Government Help to Buy Scheme – 7 key facts

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Help to Buy

Help to Buy – What you should know

The Government Help to Buy Scheme was announced in the March 2013 budget by Chancellor George Osborne.

The objective of the Help to Buy scheme is to assist first time home buyers and home movers to purchase newly built properties from builders and developers. This is achieved through the offer of an equity loan of up to 20% of the purchase price of the property.

The Help to Buy Scheme is intended to run from 1st April 2013 until 31 March 2016 (or earlier if all funds are allocated).

Help to Buy 7 facts

  • Help to Buy is available on selected newly built homes in England
  • The property purchased must be your only residence
  • Help to Buy cannot assist buy to let investors
  • You cannot rent out your existing home and buy another using the Help to Buy Scheme
  • You must provide a minimum 5% deposit for Help to Buy purchases
  • Your equity loan is interest free for 5 years only
  • Help to Buy funding will not be offered if you can afford 90% of the purchase price
  • You cannot take a lower mortgage if you can afford a higher one

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Since the Help to Buy scheme is designed to assist as many purchasers as possible to either buy their first home, or move to a larger home, certain restrictions exist.

The Help to Buy scheme will not allow you to buy a property that you could reasonable afford to buy under usual means. You cannot use the scheme simply to achieve the cash flow benefits of the free 20% equity funding.

You cannot use the scheme to enable you to own any property other than your main home.

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