Help to Buy could help you onto the property ladder quicker.
Help to Buy has changed recently, so you may have questions about how it works now and whether you could use it to secure your perfect Davidsons home. If so, you’ve come to the right place! Help to Buy is a government scheme to help first-time buyers onto the property ladder with just a 5% deposit and a 75% mortgage. The other 20% is provided as an equity loan from the government which is interest-free for five years. Thanks to the new Help to Buy scheme, first-time buyers could find their perfect property with Davidsons Homes at a variety of stunning developments across the country.
How long is Help to Buy available for?
The current scheme opened to applications on 16th December 2020 and will run right through until 31st March 2023. The equity loans will be available from 1st April 2021.
How does Help to Buy work?
- You need to buy your home with at least 5% of the sale price as a deposit.
- The home you’re buying must be your only property.
- The government lends you up to 20% as an equity loan, which is interest free for five years.
- After five years, you’ll be charged 1.75% on the loan. After the sixth year, the interest on the loan will increase by the Consumer Price Index plus 2% (or 1% if you took the loan before December 2019). The equity loan must be repaid after 25 years, or earlier if you sell your home.
- You must repay the same percentage of the proceeds of the sale as the initial equity loan. That means if you received an equity loan for 20% of the purchase price of your home, you must repay 20% of the proceeds of the future sale.
- You borrow the rest from a mortgage lender.
Learn more about Help to Buy
Perhaps you’ve read all the information above and you’ve realised you could buy a bigger first home than you could ever have thought possible, or perhaps you’d be able to get onto the housing ladder quicker than you had previously planned. Help to Buy opens up so many possibilities, and we are here to help with any questions you may have and to help you decide if this is the scheme for you. So don’t hesitate, get in touch today and we can talk you through your options and show you which of our stunning homes you may be able to buy.
Frequently asked Questions
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What Can I Afford
Want to know just how much you can afford to borrow? With just four quick questions to answer, our online affordability calculator will determine how much you could spend on your next home.