Help to Buy

1. Help to Buy Mortgage Guarantee

How it works:

• A minimum deposit of 5% is required, although you could put down a deposit of up to 20% if you wish.
• The government will guarantee the lender up to 15% of the loan for 7 years.
• You’ll need to secure up to a 95% mortgage.

Who it’s for:

• It’s available on new build and second hand homes up to a value of £600,000.
• First time buyers and existing homeowners are eligible anywhere in the UK.
• It must be your only property.

2. Help to Buy Equity Loan

How it works:

• You get together your 5% deposit.
• The government lends you up to 20% of the property value.
• You’ll need to secure up to a 75% mortgage.
• The loan is interest free for the first 5 years and then charged thereafter.

Who it’s for:

• It’s available on new build homes only, up to a value of £600,000 in England, £300,000 in Wales and £250,000 in Scotland.
• First time buyers and existing homeowners are eligible.
• It must be your only property.

Help to Buy in Scotland

In Scotland Help to Buy only applies to those who are buying a new build home from participating home builders up to the value of £250,000. Participating lenders are likely to require you to have a deposit of 5% of the property price. The Scottish Government will help eligible buyers by taking an equity stake of up to 20% of the purchase price. 

Help to Buy in Wales

Help to Buy – Wales is a shared equity loan scheme designed to help first time buyers and existing home owners in Wales purchase a new-build home up to a value of £300,000, with as little as a 5% deposit. The Welsh Government will fund a shared equity loan for up to 20% of the purchase price.

Please note

Terms and conditions apply to all Help to Buy schemes. 

Sources: UK | England | Scotland | Wales