Help to Buy
Unlock the Door to a New Home with the Help to Buy Scheme
As more and more people make positive steps to get onto the property ladder, or move up it, there’s never been a more important time to get the most out of your savings. Securing a deposit for a home is no easy task, particularly if you’re a first time buyer. Luckily, support is on hand via government schemes such as Help to Buy, which reduces how much deposit you need to save up front.
To see the latest version of the Help To Buy Guide, please click here.
With 101 things to consider on the house hunting list, we’ve simplified the information on Help to Buy into easy to digest chunks to allow you more time to focus on the things that matter most to you and your family.
What is Help to Buy?
Help to Buy allows first time buyers, and those looking to move up the property ladder, an opportunity to purchase a new build or existing property priced up to £600,000 with a deposit of just five per cent of the home’s value.
How does the scheme work to buy a New Home?
If you’re buying a new home, you can opt for the Help to Buy equity loan. You provide a small deposit of five per cent of the cost of the home, the government then provides a 20 per cent equity loan, which allows you to obtain a 75 per cent mortgage. This affordable option could help to reduce mortgage repayments and assist in securing a more attractive rate from the lender. As with the majority of loans, you will need to pay back the 20 per cent to the government, but this is done at an affordable rate and is interest-free for the first five years.
In line with Oriel’s commitment to supporting community growth and development, this scheme backs ‘buy to live’, not ‘buy to let’, therefore is not suitable for landlords looking to grow their property pools.