We could all do with a little Help to Buy
How does it work?
The Help to Buy scheme is an equity loan provided by the Government. They lend you up to 40% of the cost of your new build home, so you will only need a minimum 5% deposit and a 55% mortgage to make up the rest!
For this scheme, you must have a mortgage, which will be a first charge, as the equity loan can only be a second charge. The equity loan is for a maximum of 25 years or before if the property is sold or the mortgage is redeemed, whichever term is the shorter of the two. You will not be charged any interest on the 40% loan for the first five years of owning your home.
The scheme isn’t just for first-time buyers existing home owners can use it to take step up the ladder, you can sell your home and use your existing equity as a deposit to purchase your dream home.
How to apply
Once you have reserved a property, you can apply online on the Help to Buy London website and attach your reservation form, declaration page and direct debit form, or you can download the Property Information Form from the website which you must complete in full and email into them along with your reservation for the property. They will then check your affordability and if everything is fine, will issue you with an Authority to Proceed.