If you are looking to move home as your primary residence with no other property owned or get onto the property ladder you will probably already be aware of the Government’s Help To Buy scheme, which was introduced to enable home-movers and first time buyers to get onto the property market.
So how does it work?
The idea behind the scheme is that buyers will not have to find or save as much money to put down as a deposit on a property - typically most mortgage lenders will require a 25% deposit. In recent years saving up the amount required by a mortgage company has become much harder due to rising property prices and rising rents. So to combat this the Government will lend up to 20% of the sale price, which means that buyers will only have to find 5% to buy a property and then take out a mortgage on the remaining 75%.
So how much will this 20% loan cost?
For the first five years you won’t have to pay any interest or fees, after this period you will then be charged 1.75%, following this it will then rise with inflation, based on the Retail Price Index plus 1% each year.
What happens when I sell my home?
Once you have sold your home, or you have paid off your mortgage you will need to then pay back the equity loan plus a share of any equity.
How do I find an equity loan?
You will need to find an estate agent such as Goodfellows who is registered with the Help to Buy scheme.
Here are some appartments you can buy under the scheme:
Studio, 1 and 2 bedroom apartments available off plan now at Eton Court, Cheam, by luxury new homes developer, Montreaux. Located in the centre of Cheam Village with access to all amenities on the doorstep, this development is perfectly situated for commuters, down-sizers and would make a very attractive investment. Contact our New Homes team for more information on 0208 652 2929.
- Flat 6
- HELP TO BUY AVAILABLE
- Luxury Conversion Apartments
- Village Location
- Minutes From Train Station
- By Montreaux Ltd
- RESERVE NOW