The ‘Help to Buy Equity Loan’ scheme was a government scheme designed to help people purchase their own home. The scheme was extended due to its widespread popularity among property buyers.
Unfortunately the ‘Help to Buy Equity Loan’ scheme was closed to new applications on 31st October 2022. Existing applicants were given until 6pm on 31 March 2023 to complete upon their home purchase
The scheme provided first-time buyers purchasing a new build for less than £600,000, an equity loan of up to 20% of the cost of the house. This left them with a 5% deposit and 75% mortgage to cover the rest of the purchase price.
Under the scheme the government provided the purchaser with funds to buy their new home by way of an Equity Loan.
In England the maximum sum available under the Help to Buy scheme was £120,000, though the figure was higher in London.
Buyers were required to provide a deposit of at least 5% of the purchase price. The balance of the purchase price was borrowed under a standard mortgage.
After five years an annual fee of 1.75% was charged on the amount initially loaned. This was linked to the Retail Prices Index (RPI) plus 1%.
The loan had to be repaid after 25 years, or earlier if the property was sold.
Although this Help to Buy Equity Loan scheme has been withdrawn, there are a number of other Help to Buy schemes available that may be suitable for you to buy your home.
If you are looking for a Help to Buy solicitor in Devon and Somerset who is experienced in dealing with Help to Buy transactions then please contact us for details of our charges. Our solicitors and conveyancers will guide you through the legal process with straightforward, plain-speaking advice. Call us on freephone 0333 888 0404 or send an email to us at [email protected] for a quote.