Whether you’re looking to enter the property market for the first time – or are planning to take your next steps up the ladder – Help to Buy is all about helping you move into your dream home.
Right across the country, Barratt Homes developments offer the popular Government scheme, and it can make all the difference if you’re seeking your next move. Here’s some top advice from the five star housebuilder alongside a team of experts from L&C Mortgages.
Finding the right home
A Help to Buy Equity Loan from the government could prove crucial, whether you’re a first time buyer or an existing homeowner looking to move. The scheme can boost your equity significantly, so you can save for a much smaller deposit against the home you’ve set your heart on.
The Help to Buy Equity Loan scheme is exclusively available for newly-built homes. This means you’re able to choose from existing new-build homes, or one that’s soon to be completed.
If you’re buying off-plan though, make sure your mortgage offers you a degree of flexibility. Some offers can be extended if required, to suit your property completion date.
With a Help to Buy Equity Loan, you can borrow interest free for five years – as well as being able to access cheaper mortgage rates. You also get the benefit of only needing to pay a 5% deposit when buying your new home.
Once your five year period has ended, the interest rate will increase to just 1.75% for year six – a generous figure in the current market. This means you’ll not only have help moving on or up the property ladder, you’ll also start with the perfect blank canvas to create your home. Barratt Homes advisers are on-hand at developments near you. Talk to them to find out which homes you could move into with Help to Buy.
Choosing something you can afford
The Help to Buy Equity Loan scheme is available for new- build homes up to the value of £600,000 in England, £300,000 in Wales and £200,000 in Scotland.
While you may only be required to provide a 5% deposit, with a Government loan of up to 20% of the purchase price (40% in London and 15% in Scotland), you’ll still have to secure a mortgage for the remainder of your purchase.
This all means, when you’re choosing your home, you’ll need to consider the cost of monthly mortgage payments, stamp duty, valuations and legal fees – as well as how far your deposit will stretch.
New-build mortgage advisers can help with this – looking at your affordability as well as possible mortgage rates, now and in the future.
The first stage of the application process
Finding the right home for you – and one that is also eligible for Help to Buy – is just the first step of the process. You’ll need to inform the property developer that you wish to use the scheme for your purchase. You should also visit helptobuy.org.uk to find your local Help to Buy agent through a Property Information Form.
To be considered for Help to Buy, you must illustrate your financial viability. Once successful, you’ll be given access to your equity loan. Remember, this is interest-free for the first five years. After that, you will begin to pay interest against your remaining loan.