Help To Buy
The Help to Buy scheme is made up of two parts:
An ‘equity loan’, (from 1 April 2013) where the government will lend you up to 20% of the value of your newly-built home
A ‘mortgage guarantee’, where the government will guarantee part of your mortgage if you only have a small deposit
The equity loan scheme – for newly built property
This scheme started on 1 April 2013 and will run for three years. It will be available in England only.
The Welsh and Scottish governments and the Northern Ireland Assembly will have funding for similar schemes.
Under the loan scheme, if you have a 5% deposit and want to buy a newly-built home, you can apply for a loan worth up to 20% of the value of the property. So you will only need to take out a mortgage for 75% of the cost of the property.