Five years on from the first buyers using Help to Buy to get on the property ladder, the Government scheme remains as popular as ever.
In April 2013, around 2,000 people took advantage of the equity loan that mean they could borrow up to 20 percent of the purchase price of their new home interest-free from Help to Buy. That meant they only had to find a 5 percent deposit on their own, making a first buy more affordable and accessible for many.
In London, the equity loan amount is set at up to 40 percent of the purchase price because of the much higher property prices in the capital.
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£10bn of funding in place
Last year the Government announced an extra £10 billion of funding that will keep Help to Buy – via the equity loan, tax-free ISA and shared ownership schemes – in place until 2021. To date, around 300,000 people have got on the property ladder using Help to Buy.
The maximum purchase price of a property via Help to Buy is £600,000. The scheme covers both new-build properties and second-hand homes.
For those who cannot afford to buy a house outright, even with the help of an equity loan, shared ownership is proving a popular alternative.
This part of the Help to Buy scheme allows first-time buyers and households with an income of less than £80,000 a year (£90,000 inside London) to buy a share in a house or flat, starting at 25 percent and rising to a maximum of 75 percent on initial purchase. You can opt to buy a larger share at a later stage, a process known as staircasing.
Shared ownership is usually offered through housing associations and many are newbuilds, though there is a thriving market in selling existing housing association homes through shared ownership.
Experts on your side with Homeward Legal
When you’re considering using Help to Buy to purchase your home, you need a conveyancing solicitor who has the expert knowledge of the process. Homeward Legal works with a nationwide panel of solicitors who are experienced in helping clients buy through the various Help to Buy schemes.
We can also introduce you to conveyancing solicitors who have the staircasing expertise when you want to buy a further percentage of your shared ownership home. And if you are an existing homeowner who purchased with a Help to Buy equity loan, find out how remortgaging to pay off the loan or move to a better interest rate would work.
Call our team now on 0800 038 6699 or get an instant, no-obligation quote.