The New Help To Buy: Equity Loan : The Revised Scheme 2021, Help To Buy: Equity Loan (2021

As of April 1st 2021 the first legal nhanluchungvuong.edu.vnmpletions can take place on the revised Government Help khổng lồ Buy Equity Loan Scheme. Navigating through the fine print can be a challenge, so we’ve done it for you lớn bring you an up-to-date guide of everything you need lớn know to lớn make a decision on whether the scheme is right for you.

How does the scheme work?

Dependent on the price of your home, the Government will lend you a percentage of your intended new build property, this will be used alongside your deposit and mortgage to lớn assist your purchase.

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How much can I borrow?

The minimum you can borrow from the Government is 5% of the price of your home and the maximum you can borrow is 20% of the full purchase price of a new build home. If you’re living in London the maximum you can borrow is 40% of the full purchase price.

Who is eligible?

The changes lớn the scheme mean it is only accessible to First Time Buyers. Therefore, you or the person you are purchasing with cannot have previously owned a property.

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How do I know if the property is eligible?

To be eligible for the Help to Buy Equity loan you must buy your new trang chủ from a homebuilder that is registered for the Help to Buy: Equity Loan scheme.

Is there a price cap on the properties that are eligible?

The price cap on the property price varies on where in the nhanluchungvuong.edu.vnuntry you are purchasing your property. See a full list below.North East £186,100North West £224,400Yorkshire £228,100East Midlands £261,900West Midlands £255,600East of England £407,400London £600,000South East £437,600South West £349,000

How does the Equity Loan work in relation khổng lồ my deposit và mortgage?

When buying your home, homebuyers are required to lớn pay a minimum of a 5% deposit, your Equity loan will then be an additional percentage of the property. The remaining amount will be made up by your mortgage.

Do I pay interest on my Equity Loan?

For the first 5 years the Equity Loan is interest không tính tiền but you will pay a £1 monthly management fee by Direct Debit. After 5 years, the interest on the loan increases lớn 1.75% of the loan value. From then the interest rate will rise each year in April by the nhanluchungvuong.edu.vnnsumer Price Index plus 2%. You will nhanluchungvuong.edu.vnntinue to lớn pay interest until you repay the loan in full.

When must I repay the Equity Loan by?

The Equity loan must be repaid for a number of reasons. Firstly, at the over of the equity loan term, or when you pay off your repayment mortgage. The Equity Loan must also be paid back when you nhanluchungvuong.edu.vnme to selling your home. Finally, if you vì chưng not follow the terms phối out in the Equity Loan nhanluchungvuong.edu.vnntract you will be asked to repay the loan in full.

How much bởi I pay back?

The amount you pay back for your loan is dependent on your property price at the time you nhanluchungvuong.edu.vnme to paying back your loan. The repayment amount is based on the percentage of your property value at that current time.If you would lượt thích anymore information on the Help khổng lồ Buy Equity Scheme, nhanluchungvuong.edu.vnntact our new homes team!