Help to Buy - Equity loans
The Help to Buy equity loan scheme gives buyers the opportunity to purchase a new build home with the help of an equity loan guaranteed by the government.
With a Help to Buy equity loan, the government loans you up to 20% of the cost of a new-build home, so you only need a 5% deposit and a 75% mortgage to make up the rest.
An equity loan of up to 20% of the property value will be provided through Help to Buy. It’s interest-free for 5 years. After that, you pay an annual fee of 1.75% on the amount of the outstanding loan. The fee will increase each year by inflation (Retail Price Index (RPI) + 1%.
You can start repaying the equity loan after you’ve owned the home for a year, but you’ll need to be able to pay a minimum of 10% of the property value at the time of repayment.
When you want to sell your home, you’ll need to repay the percentage equity loan that is still outstanding. So, for example, if you originally bought 80% of the property and you hadn’t repaid any of your equity loan, your repayment on selling would be 20% of the market value at the time when you sell.
Click the link to read the full Help to Buy buyers’ guide produced by the government’s Homes and Communities Agency.
Details of the Help to Buy equity loans homes available in Essex, Kent, Sussex and South London can be found by using the property search function on this site. If you don't find what you are looking for a list of developers offering Help to Buy equity loan homes can be found here.
In addition, Help to Buy equity loan homes in our areas, and throughout England, are marketed via the Rightmove and Zoopla websites, http://www.rightmove.co.uk/help-to-buy.html and www.zoopla.co.uk/help-to-buy/.
Moat administers all Help to Buy equity loan sales for the government in Essex, Kent and Sussex and currently in South London.
If you are a developer looking to apply for funding from the Help to Buy equity loan scheme, you can find registration guidance and submission forms at http://www.homesandcommunities.co.uk/help-to-buy.