Help to Buy Scheme
The Government's Help to Buy Equity Loan scheme, which is specifically for new build properties, now makes it possible to buy a property with just a 5% deposit.
The scheme is aimed at helping first time buyers and homemovers with a deposit as little as 5% to buy a new build property in England or Wales.
The Government will provide borrowers with a loan of 20% of the property, meaning only a 75% mortgage is required from a lender.
The equity loan is interest free for the first five years.
After that, you will pay a fee of 1.75%, rising annually by the increase (if any) in the Retail Price Index (RPI) plus 1%.
When you sell your Help to Buy home (unless you have chosen to repay your equity loan earlier), you must repay the Help to Buy assistance from a share of the sale proceeds.
So, if the Agency assisted your purchase with a 20% contribution, your repayment will be 20% of the total market value when it is sold.
The Equity Loan scheme enables more people to take their first steps onto the property ladder by lowering the amount required for a deposit.
Further information can be obtained from the government's website at - www.helptobuy.org.uk
The Welsh Government and Scottish Government also have information on affordable home ownership schemes in Wales and Scotland.