Thanks to the new Government-backed equity scheme ‘Help to Buy‘,
you could buy a new home with a 5% deposit plus a 20% equity loan from the Government.
Help to buy is the new Government-backed scheme. Those looking to buy a new home (whether first time buyers or existing home owners) only need a 5% deposit to buy a new home, up to £600,000 in value,and qualify for some of the best mortgage rates available.
Buyers will be provided with an equity loan of up to 20% of the value of the property. This will be interest free for the first five years.
After this period, a fee of 1.75% is payable on the equity loan, this will rise by RPI inflation plus 1%.
The loan can be repaid at any time within the first 25 years (or the terms of mortgage), or alternatively on the sale of the property.
The Government is continuing its pledgeto help more people across the country become homeowners. It is also concerned with increasing the supply of low-deposit mortgages and new housing.
If you can raise a 5% deposit you will be able to buy a new home under Help to Buy.
The maximum home purchase price is £600,000.
Help to Buy is available for both first-time buyers and existing homeowners.
The scheme is only available on properties that will be occupied by the person or persons who have taken out the mortgage.
The scheme is only available in relation to capital repayment mortgages.
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