HELP TO BUY OPTION 1 – EQUITY LOAN
- You only need a 5% deposit
- Available for new build homes
- Available to first-time buyers and existing homeowners (who have sold their home)
- The government will lend you up to 20% of the value of the new property (40% in London)
- You will own 100% of your home
- Equity loan is interest free for 5 years
HELP TO BUY OPTION 2 – ISA
- Raise the deposit on your first home faster
- Save up to £200 per month and the government will add an extra 25% – a £50 bonus for every £200 you save
- To a maximum amount of £3,000 per person
HOW DO I PAY OFF THE GOVERNMENT LOAN?
You won’t be charged loan fees for the first 5 years of owning your home. In the 6th year, you’ll be charged a fee of 1.75% of the loan’s value. After this, the fee will increase every year for up to 20 years. The increase is worked out by using the Retail Prices Index plus 1%.
EXAMPLE BASED ON A £200K PROPERTY