Help to Buy Scheme
Make the cost of moving more affordable with the government Help to Buy scheme, offering two new ways to buy a new Lovell home with just a 5% deposit.
Help to Buy: Equity Loan
Under the scheme, if you are a first or second time buyer and you do not currently own a property in or outside the UK then with a Help to Buy Equity Loan, you’ll only need a 5% deposit to purchase a new build home. The government will lend you up to 20% of the value of the property, so you can access mortgages up to 75% of loan to value
The loan is available on new build properties under £600,000 in England, as long as they’re not being bought as buy-to-let.
The loan can be repaid at any time and is interest-free for the first five years. After that, it will be charged at 1.75% of the equity loan, rising annually by RPI plus 1%.
Help to Buy: Mortgage Guarantee
The Help to Buy: Mortgage Guarantee is also available on new build and existing homes. If you can afford the repayments but don’t have a large deposit (minimum 5%) the Mortgage Guarantee offers you a mortgage of up to 95% from participating mortgage lenders.
The lender can now offer up to a 95% mortgage as the Government will provide the lender with a guarantee of up to 15% of the property value, reducing the risk for lenders and enabling the lenders to offer you more competitive rates. The Help to Buy: Mortgage Guarantee scheme is available on all Lovell house purchases up to £600,000 in England, Scotland and Wales.
If you’re interested in finding out more about Help to Buy and how it can assist you get in touch with a Lovell development today.Help To Buy Calculator For more information and for full terms and conditions
download the Help to Buy Scheme Leaflet.