Help to Buy

Help to Buy schemes are an initiative introduced by the government to support first-time buyers onto the property ladder.

There are a number of different schemes and once you find the one to suit your circumstances, our residential conveyancing team have lots of experience dealing with them and making sure you get the most out of your chosen scheme.

The available schemes are set out below:

Help to Buy: ISA

The Help to Buy ISA offered by a number of banks and building societies and is available to first-time buyers and gives you a 25% bonus if you’re saving for a deposit. Each first-time buyer is eligible to open an ISA meaning that if you choose to purchase a first property with your partner, you are both able to claim the bonus.

In the ISA you are able to open with up to £1,200 in the first month and save a maximum of £200 per month to a total of £12,000 which would give you the maximum bonus of £3,000 (the minimum saving to be eligible for the bonus is £1,600). When you’re about to buy your first home, your conveyancer will obtain your government bonus and add it to the funds you’re putting towards your home.

Help to Buy: Shared Ownership

This scheme offers you the chance to buy a share of your home between 25% and 75% of its value, and pay rent on the rest. You are able to increase your equity in the property over time until you own 100% of the equity.

Help to Buy Shared Ownership schemes are available to you if you fulfil the following criteria:

• your household earns £80,000 a year or less outside London, or your household earns £90,000 a year or less in London
• you are a first-time buyer, you used to own a home but can’t afford to buy one now or are an existing shared owner looking to move.

More information about general shared ownership schemes can be found here.

Help to Buy: Equity Loan

When choosing the Help to Buy Equity Loan, the government will lend you up to 20% of the cost of the house, leaving you with only a 5% deposit and 75% mortgage, making it easier to save for a deposit.

The Equity Loan is available to first time buyers and homeowners who’d like to move to a new build property with an asking price of up to £600,000 provided you aren’t planning to let the property. You won’t be charged loan fees on the 20% for the first five years that you own the property.

If, after five years, your property has increased or decreased in value, your repayments will be based on 20% of the new value of the house – not the price you paid for it.

Help to Buy in London

To reflect property prices in London, the Help to Buy: Equity Loan scheme’s upper loan limit is 40% for buyers in all London boroughs.

To find out more about how Mincoffs can advise you regarding your Help to Buy scheme, please get in touch with one of our residential conveyancing team by calling 0191 281 6151 to speak to a member of the team.