Help to Buy: Equity Loan
If you want to own a new-build home in England but you haven’t saved a big enough deposit, the Help to Buy: Equity Loan scheme could offer the help you need.
You could borrow up to 20% of the cost of a new-build home from the government on homes up to £600,000. You would then only need a 5% cash deposit and a 75% mortgage to make up the rest. You also benefit from not paying interest for the first 5 years.
To reflect the current property prices in London, from 1 February 2016 the Government will increase the upper limit for the equity loan it gives new home buyers within Greater London from 20% to 40%. You would still need a 5% cash deposit so you would only need a 55% mortgage to make up the rest. Find out about London Help to Buy.
The Help to Buy: Equity Loan scheme is run by regional Help to Buy agents. They can guide you through your purchase, from providing general information about the scheme to dealing with your application. Alternatively, look out for the Help to Buy logo on new-build developments and ask about the scheme there.
New Help to Buy scheme announced
The Government has announced a new Help to Buy scheme to run from April 2021. It is restricted to first-time buyers and includes regional property price caps to ensure the scheme reaches people who need it most. There are no changes to the current Help to Buy equity loan scheme which runs to March 2021.
The new scheme will run from April 2021 to March 2023. As with the current scheme, under the new scheme, the government will lend buyers up to 20% of the cost of a newly built home, and up to 40% in London.
Read more about this on gov.uk