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Help to Buy

The Government’s Help to Buy schemes are to help buyers with small deposits (5% or over). Take a look to see if this could be something that could be of help to you.

Hawes & Co can introduce you to Embrace Financial Services who have specialist advisers who are able to discuss Help to Buy further and see if you are eligible.

Detailed information can be found on the Government website www.helptobuy.gov.uk

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Help to Buy: Equity Loan

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Help to Buy: Equity Loan (2021-2023)

Help to Buy London is a government scheme designed to help first time buyers who have never owned a property/land before to advance up the property ladder in London.

The property you buy must:

  • be a new build
  • have a purchase price of up to £600,000, subject to regional price caps
  • be the only one you own
  • not be sub-let or rented out after you buy it

How does it work?

Help to Buy is an equity loan from the government up to 40% of the value of a property, provided you have a deposit of 5% you will only need a mortgage of 55% of your new home.

What properties can I buy with Help to Buy London?

New build properties within the 32 boroughs of London up to the value of £600,000 are eligible for the Help to Buy London scheme.

When getting a mortgage you will be able to borrow up to a maximum of 4.5 times your salary.

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Help to Buy London equity loan example

For a property worth £400,000AmountPercentage
Cash deposit£20,0005%
Equity loan£160,00040%
Your mortgage£220,00055%

How do I pay back the Help to Buy London equity loan?

You must pay back the loan after 25 years or when you sell your home - whichever comes first.

You will not be charged any interest on the 40% loan for the first five years of owning your home.

However a management fee of £1 a month will be applicable from the date of purchase for the duration of the equity loan.

From year six, a fee of 1.75% is payable on the equity loan, which rises annually by CPI (Consumer Price Index) inflation plus 2%.

For full information about the scheme, please visit helptobuy.gov.uk

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