- Cradley Heath 01384 410410
- Wolverhampton 01902 424927
What is a Help to Buy Equity Mortgage?
With a Help to Buy Equity Loan the Government lends you up to 20% (40% if you’re in London) of the cost of home, meaning you only need a deposit of 5%. You then borrow the rest of the purchase amount as a mortgage.
To be eligible for a Help to Buy equity loan, you must be buying a new-build property costing no more than £600,000 that you’ll be living in as your home. You don’t need to be a first-time buyer, but you’re not eligible if you own another property in addition to one you’re selling.
You won’t be charged interest on the 20% loan for the first five years of owning your home. From year six, you start to pay a monthly interest fee of 1.75% of the equity loan. Your interest fee will rise each year in April by the Regional Price Index (RPI) plus 1% until you repay your loan.
You only need to repay the equity loan in full when you either pay off your mortgage, sell your home or come to the end of your equity loan term.
If you would like any further information or advice in relation to buying or selling a property, please contact us on 01384 410 410 or send an email to residentialconveyancing@georgegreen.co.uk. You can also get a free quote by using our conveyancing quote tool on our website.