Help to Buy
The Government’s current Help to Buy Scheme, is changing in April 2021 and is then only applicable to first time buyers.
The current scheme is designed to help both first time buyers and previous homeowners by making mortgages more affordable when buying a new build home worth £600,000 or less. Of course all our apartments at Rainbow View qualify
Below is further information on how Help to Buy could help you own your first home, or purchase a home even if you have owned one in the past. Until April 2021 this will also be suitable for those who are downsizing.
How does Help to Buy work?
With a Help to Buy Equity Loan the Government can lend you up to 20% of the cost of your new home. You’ll then only need a 5% deposit and a 75% mortgage to make up the rest of the value.
There is no interest charged on the 20% loan for the first five years of owning your home. You can pay back the loan at any time, or alternatively when you sell your home. If you still have the loan when you do come to sell, you will repay it at this stage.
If you have not repaid your Help to Buy equity loan in full after five years, you will need to pay an interest fee of 1.75% of the amount of your equity loan at the time you purchased your property. This rises annually from the fifth anniversary of your equity loan by the increase (if any) in the Retail Price Index (RPI) plus 1%.
The benefits of Help to Buy
- Only a 5% deposit* needed
- 20% interest free loan# for 5 years
- 100% ownership of your home
- Access to competitive mortgage rates†
- Buying is more affordable with lower monthly payments
*5% deposit is applicable with the Government’s Help to Buy scheme and is available to first-time buyers, as well as previous homeowners. #20% Government backed Equity Loan subject to status. †Subject to status.