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Government Help To Buy Scheme Explained

In January of 2013 we released an infographic about the Government help to buy scheme.

We've now updated our infographic (below) and added some further information about the help to buy scheme.

 

Help To Buy Explained Infographic

Government Help To Buy Scheme Explained  

The Help To Buy Scheme Explained - How Does It Work And How To Apply


Help to Buy is a government scheme that can help you move home with a deposit as low as 5%.

We've put together everything you need to know about the two available help to buy options; Mortgage Guarantee and Equity Loan.

 

Help To Buy Example With A Property Worth £200,000

Amount Percentage
Cash deposit £10,000 5%
Equity loan £40,000 20%
Your mortgage £150,000 75%
 

Equity Loan - Help To Buy Option One

Equity Loan

With an equity loan:

  • you'll need to contribute at least 5% of the property price as a deposit
  • the government will give you a loan for up to 20% of the price
  • you'll need a mortgage of up to 75% to cover the rest
 

Frequently Asked Questions - About Equity Loan Help To Buy


Here we've put together some frequently asked questions to help explain equity loan help to buy.

Is It Applicable To Any Property?

No, just new build only.

Deposit Required?

Yes, a minimum of 5%.

Do I Have To Be A First Time Buyer?

No, this scheme is available to all, not just first time buyers.

How Does It Work?

The Government will lend you up to 20% of the value of your property through an equity loan, which can be repaid at any time or on the sale of your home, so you will only need to secure up to 75% mortgage from a bank or building society.

When Does It Start?

The scheme started from 1st April 2013. It will run for 3 years from that date and provide £3.5 billion of addition investment.

 

Mortgage Guarantee - Help To Buy Option Two


Here we've put together some frequently asked questions to help explain mortgage guarantee help to buy.

Mortgage Guarantee

To qualify for a mortgage guarantee, the home you want to buy must:

  • have a purchase price of £600,000 or less
  • not be a shared ownership or shared equity purchase
  • not be a second home
  • not be rented out after you buy it
 

Frequently Asked Questions
About Mortgage Guarantee Help To Buy


Here we've put together some frequently asked questions to help explain mortgage guarantee help to buy.

Is It Applicable To Any Property?

Yes, new build and existing homes.

Deposit Required?

Yes, you'll need a minimum of 5%.

Do I Have To Be A First Time Buyer?

No, it is also open to existing homeowners.

How Does It Work?

You'll need to secure a mortgage for your purchase. The Government guarantee should help encourage lenders to offer better access to low-deposit mortgages.

When Does It Start?

Available from January 2014, this scheme will run for 3 years.

Is There A Maximum Purchase Price?

Yes, £600,000.

 

Related Resources

Picture Sources

Woodley Wonder Works.

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