How does it work?
Once you have saved a 5% deposit, eligible candidates can borrow up to 20% of the value of the property through an equity loan from the Government’s Help to Buy Scheme. You will therefore need a 75% mortgage to cover the remaining cost of the property.
How much does the loan cost?
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%.
What if I want to sell?
If you wanted to the sell the property, you could do with without restriction. Upon completion of the sale, the equity loan would be repaid by way of a share of the proceeds. If you were to continue living in the property, however, the equity loan would need to be repaid after the maximum 25 years.
Am I eligible?
Yes, if you can afford a 5% deposit and are looking to buy a new build property worth £600,000 or less.
How do I proceed?
Contact your local Help to Buy Agent for more information about eligible properties. Your mortgage application will be subject to credit referencing, underwriting and a property valuation.
Visit: www.helptobuy.org.uk for more information and to find your local agent.
Help to Buy Mortgages from Teachers
Our Help to Buy mortgage is available to education professionals in England as well as residents of any profession looking to purchase a property in Wessex (Dorset, Hampshire and Wiltshire).
For information on the Government Shared Ownership Scheme click here.