Help to buy
The Help to Buy: Equity Loan scheme accepts applications from both first time buyers and existing home owners looking to move who wish to buy a new build property.
The Government will lend you up to 20% of the new property price, so you will need to fund the remaining 80% of the purchase price through a combination of a mortgage and deposit. You must put down a minimum of a 5% deposit in order to apply for the scheme, leaving up to 75% to be funded by a mortgage loan.
If you wanted to buy a house for £150,000 with a 5% deposit you would need:
£ 7,500 deposit
£ 112,500 mortgage loan
£ 30,000 Help to Buy: Equity Loan
The Help to Buy loan is provided on an interest free basis for the first 5 years and a management fee of £1 per month is payable on a monthly basis from when the loan starts.
To see if Help to Buy Equity Loans might be right for you please visit the Help to Buy Midlands website: https://www.helptobuymidlands.co.uk/help-to-buy---equity-loan