Help to Buy has closed
Help to Buy: Equity Loan has now closed to new applications. If you’re buying a home with Help to Buy: Equity Loan and would like information about your application, contact your Help to Buy agent. You can also find information about the application process in the Homebuyers’ guide to Help to Buy: Equity Loan.
If you have a Help to Buy: Equity Loan, you can find information about interest payments and how to make changes to your equity loan on www.gov.uk/manage-equity-loan.
You can find out about other government home ownership schemes on www.OwnYourHome.gov.uk.
Managing your equity loan
After you’ve bought your new home, your Help to Buy agent will pass your details to the equity loan administrator. They will:
set up your Direct Debit to pay back fees and charges on your equity loan in regular instalments
arrange for you to pay fees and interest payments on your equity loan (after the first five years)
help you if you want to pay off some or all of your equity loan
help you if you want to make changes to your equity loan account
Paying back the Equity Loan
For the first five years the equity loan is interest free and you pay a £1 monthly management fee.
From year 6 you'll pay the £1 monthly management fee and a monthly interest fee of 1.75% of the equity loan.
The interest rate will rise each year in April by the Consumer Price Index (CPI), plus 2%. You'll continue to pay interest until you repay your loan in full.
Options for first-time buyers
Help to Buy may have ended, but there are still other schemes available that are designed to help get first-time buyers on to the property ladder:
Shared ownership is a part buy, part rent scheme that gives first-time buyers and those that do not currently own a home the opportunity to buy a brand new home. Buy the portion you can afford now, and buy further shares as and when you can afford to.
First Homes is a new scheme designed to help local first time buyers and key workers onto the property ladder, by offering homes at a discount of 30% compared to the market price.
Want to know more about schemes for first-time buyers? Simply give our team a call free on 0808 196 1532