Help To Buy, I’m sure we’ve all heard of it. All heard great things about it. But we may not truly know what it is and how it can help up. In this post, we are going to share with you some facts all about the Help To Buy Scheme and how these can help you.
Help To Buy Isa
This is a savings account that was available for first-time buyers to open. You could save up to £200 a month, starting with a lump sum of up to £1200. The government would top up your savings by 25%. Meaning you could gain up to an extra £3000 extra cash towards your deposit. Unfortunately, this scheme closed in 2019, but there are many other options to choose from.
Help To Buy Equity Loan
This is essentially where the government lends you money towards purchasing a new build property. They will offer you a minimum of 5% and a maximum of 20% property loan. You will need a 5% deposit saved for the property. You will also need to be able to gain a mortgage of the remaining amount minus the loan to be accepted. You will need to pay £1 a month for this equity loan and must pay it back in full when you sell your property. But it can help begin your journey on the property ladder.
Help To Buy: Shared Ownership
This is another scheme offered to first-time buyers. This is where you can purchase a share of a property, but it will be yours to live in. You will need to pay rent on the remaining share of the property, with the price being decided by the company you purchase the share from. You are able to sell your share and will gain any profit from this sale. This helps people to go onto the property ladder who are not able to gain a large mortgage.