An outstanding opportunity to purchase your dream home.
Whether you are a first time buyer taking your first step on the property ladder or an existing homeowner* looking to upgrade, you could get the new home you’ve been saving for with just a 5% deposit with Help to Buy.
- Available on new builds up to £600,000 in England (excluding Wales and Scotland).
- You need to have a minimum deposit of 5% of the property value for your new home.
- The UK Government will lend you up to 20% of the property value through an equity loan which can be repaid at any time during the loan term or sale of your home.
- You’ll only need to secure up to a 75% mortgage from a bank or building society, making that first step a little easier.
- You won’t be charged any loan fees for the first five years of owning your home.
When you choose one of our new homes using Help to Buy, we will help you along the process every step of the way. Our attention to detail now means that now everyone can enjoy a beautiful, high specification home that has been designed with you in mind, with all of our properties covered by a 10 year structural guarantee.
So what are you waiting for? Find your dream property today.
Call us on 01344 872596 to talk to one of our expert sales advisers.
*your property would need to be sold subject to contract
An example of how Help to Buy works is as follows:
|Deposit||£18,250||(5% of purchase price)|
- This offer is only available on selected new build plots and Developments in England only (excluding London). The maximum property value for Help to Buy is £600,000.
- Help to Buy is only available on capital and interest (or repayment) mortgages and on properties which are occupied by the individual or individuals taking out the mortgage.
- Purchasers will be required to raise funding (including a mortgage and deposit) of not less than 80% of the property purchase price (excluding any mortgage fees). The property will be subject to a first change in favour of the mortgage company. Purchaser deposit must be a minimum of 5% after the equity loan has been applied. Mortgage lender’s criteria may affect any deposit percentage and whether it applies before or after the equity loan is deducted from the purchaser price.
- The Homes and Community Agency (HCA) will provide an equity loan to eligible purchasers of not less than 10% and not more than 20% of the purchase price subject to the terms of the equity loan agreement. Based on the maximum purchase price of £600,000, the HCA will therefore provide an equity loan of up to £120,000.
- The equity loan provided by the HCA will be secured by a second charge on the property behind the first charge referred to in paragraph 1.3.
- The equity loan provided by the HCA will not incur any loan fees for the first 5 years. From the beginning of year 6, loan fees will be payable by the purchaser at an annual gross rate of 1.75% of the loan’s value, rising at the Rental Prices Index (published by the office for National Statistics) plus 1% per year thereafter. Fee’s don’t count towards paying back the equity loan.
- The equity loan must be repaid within 25 years of legal completion of the purchase of the property whether the property is sold or not.
- The equity loans will be repayable on the basis of the greater of the price of the property or its market value at the time of future sale or mortgage repayment as opposed to the original purchase price but disregarding additions or improvements made to the property by the purchaser with the consent of the HCA. This means that if the property increases or decreases in value, the purchaser will pay the HCA the same percentage of the new price of the property as the percentage the equity loan was of the original price. This may result in the HCA being paid more or less than the original loan value.
- If, on the sale of the property, the price of the property has fallen and there is insufficient money from the sale to repay the equity loans after the mortgage has been paid the purchaser will lose any deposit paid. The HCA will not however seek to recover the balance of their equity, not otherwise paid out of the proceeds of sale, from the purchaser.
- The purchaser may repay the equity loan to the HCA at any time following legal completion. Repayment whether in full or by instalments will be based on the market value of the property at the time of the repayment(s) and the purchaser will have to arrange and pay for the valuation of the property at that time. The minimum instalment value is 10% of the total of the equity loans.
- Detailed terms and conditions apply to the equity loan which will be made available to the purchaser via their legal advisors as part of the conveyancing process.
An example of how Help to Buy works is as follows:
|Deposit||£16,250||(5% of purchase price)|
|Equity||£65,000||(20% provided by HCA)|
|The equity loan provided by the HCA will not incur any loan fees for the first 5 years. From the beginning of year 6, loan fees will be payable by the purchaser at an annual gross rate of 1.75% of the loan’s value, rising at the Retail Prices Index (published by the Office for National Statistics) plus 1% per year thereafter.|
|Open market value||£406,250||(a 25% uplift in value)|
|Mortgage repayment||£243,750||(assuming no repayment of capital)|
|Deposit||£81,250||(20% of the open market value)|
|Remainder available to purchaser||£30,000|