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The NEW Help to Buy Scheme

Help to Buy

We all need a little bit of help from time to time. If you have been struggling to purchase your new home, then the Help to Buy Equity Loan scheme and the Help to Buy Mortgage Guarantee which were launched in 2013, provide the key.

This Government backed scheme enables homeowners and first time buyers to own their new Amethyst Home in England, up to the value of £600,000.

How Help to Buy schemes can help YOU

First things first, this scheme is available to everyone, whether a first time buyer or not, and is now available in England, Scotland and Wales. As long as you can raise a 5% deposit, you can access Help to Buy. There are two specific Help to Buy schemes; the Equity Loan and the Mortgage Guarantee.

Help to Buy Equity Loan
The equity loan scheme enables you to loan between 10 – 20% of the value of your new build property.

In England you won’t be charged a loan fee for the first 5 years and the equity loan be repaid at any time within the first 25 years, or alternatively on the sale of the property. The benefit for most buyers accessing the equity loan is that you need only secure up to a 75% mortgage from a bank or Building Society.

Help to Buy Mortgage Guarantee
This alternative scheme announced by the Government in October 2013, is available for both new build and existing homes up to £600,000 in England.

You will need to secure up to a 95% mortgage (only a 5% deposit needed) from a participating mortgage lender. This is now available as an option because the Government will provide the lender with a guarantee of up to 15% of the property value.

Help to Buy is only available for homes that you will live in (not for example a buy-to-let property) and you will only be able to use it in relation to a capital repayment mortgage (not and interest only mortgage).

Further reading from Gov.UK

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