What is the scheme and who can apply?
Help to Buy is a Government scheme which aims to help more first time buyers take their first important step onto the property ladder. The nationwide scheme has been a great success in the short time that it has been available and helpfully there is a separate Help to Buy scheme available to those looking to purchase a property in the London boroughs. In essence, Help to Buy is an Equity Loan the Government lends to you of up to 40% of the cost of your newly built home so that you can put down as little as a 5% deposit (along with your mortgage to cover the remaining amount).
The scheme comes as part of a series of Government plans unveiled in the past two years to bring more mobility to the property market and more opportunity for those looking to invest in their first home.
For Londoners, Help to Buy makes available a loan of 40% from the Government to first time buyers purchasing a new build property. The percentage of the overall property price the loan represents was increased in February 2016 from 20% to 40% in London. This loan can be used along with a mortgage of up to 55%, meaning that purchasers only need to provide a 5% deposit. This makes many more properties far more viable and accessible as investments across the Capital, and is a considerable incentive for those with a mortgage at or near this percentage.
The Government loan also offers a 5 years interest free period. This second incentive is a helpful buffer in what can be an expensive time, further supporting the moving process for new buyers.
It's worth noting that not all banks and building societies offer mortgages suitable for Help to Buy. At James Pendleton we work with SPF Private Finance
who can help you understand your different mortgage options and secure the best mortgage for you and your individual needs.
Which properties does the scheme apply to?
The Help to Buy scheme is only applicable to new build properties on sale for £600,000 or under and the property must be approved for Help to Buy by the Government.
We now have more new build homes in London and the South West such as Lombard Wharf, Larkhall Quarter, Elephant Park, St Martins Court and Viewpoint to name a few. Check out some of our other help to buy properties in London here
If you're interested in viewing more help to buy properties in London or would like to know more about the Help to Buy scheme, you can contact our New Homes & Investment team at firstname.lastname@example.org
or call us today on 020 8099 1111.