It works like this: Home bought for £200,000, sold for £250,000. If you have an existing account, you can continue to save (and benefit from the 25% bonus) until December 2030. Find out more about Help to Buy in Wales. However, this extension will be restricted to first-time buyers purchasing newly built homes. Which? The minimum percentage you can pay back is 10% of the market value of your home. The Help to Buy scheme is an equity, or low-interest, loan- from the government that you can put towards a house deposit. Rent or buy – which is the best option for you? People in the Armed Forces can borrow up to 50% of their salary interest-free to use for a property deposit and other buying costs, such as legal fees. In England, the government's Help to Buy scheme has four main parts: Help to Buy equity loans, London Help to Buy, Help to Buy shared ownership (commonly shortened to 'shared ownership') and Help to Buy Isas. Can you move home during the coronavirus lockdown? Our general email address is Home-moving checklist – top tips to plan for the cost of moving day. Need help sorting out your debts, have credit questions or want pensions guidance? The exact amount depends on how much you’ve paid off your mortgage. Sorry, web chat is currently offline, our opening hours are. If you live elsewhere in the UK, you can use: You don’t pay any interest or fees on the government’s equity loan for the first five years. If you use Help to Buy, you can only take out a repayment mortgage. With Help to Buy, you could buy a brand-new home sooner than you think. From April 2021, the English scheme will only be open to first-time buyers and regional price caps will be introduced. Help to Buy is the government’s scheme that offers buyers an equity loan they can use to help to buy a new build home. You will need to take out a repayment mortgage to cover the remaining amount. Monday to Friday, 8am to 6pm, Saturday, 8am to 3pm, 24 December 8am to 3pm, 25 to 28 December, closed. In the sixth year, you’ll be charged 1.75%. Help to Buy is not available to assist buy-to-let investors or those who will own any other property after they complete. The London Help to Buy scheme works in the same way as Help to Buy equity loans in the rest of England - but buyers in London can borrow 40% of the property price from the government, rather than 20%. In England, the government's Help to Buy scheme has four main parts: Help to Buy equity loans, London Help to Buy, Help to Buy shared ownership (commonly shortened to 'shared ownership') and Help to Buy Isas. How is coronavirus affecting house prices? The scheme applies to new-build properties up to a maximum value of £200,000 and closes in March 2022. Give us a call for free and impartial money advice. We use cookies to allow us and selected partners to improve your experience and our advertising. After five years, you start paying interest on the government loan. Until 2021, it will allow Londoners with a 5% deposit to get an interest-free loan for five years, worth up to 40% of the value of a newly-built home – twice as much as under the existing Help to Buy equity loan scheme. The Government’s Help to Buy scheme aims to help buyers who have a deposit of at least 5% to buy a new home up to the value of £600,000. Help to Buy is a government scheme which can help first time home buyers get a property with just a 5% deposit. To buy a home you need a deposit you have saved yourself of at least 5% of the purchase price. It can only be used for new-build properties. The Help to Buy scheme has been running for a few years now, having been initiated in April 2013 (England). Help to Buy is the name of a government programme in the United Kingdom that aims to help first time buyers, and those looking to move home, purchase residential property. The home you buy must be your only residence. ; You then need to secure a 75% mortgage. There are pros and cons to buying through shared ownership - read our guide to understand whether it could work for you. Help To Buy Government Scheme Explained. The primary scheme is known as Help to Buy scheme is available to all buyers who are looking to purchase a newly built property. Find out how much deposit you need for a mortgage, use our mortgage deposit calculator, and see how much deposit first-time buyers in your area are paying with our ... How much can I borrow: mortgage calculator, Scottish And Northern Irish Property Systems, Coronavirus (COVID-19) home-buying update, Help to Buy Isa (no longer open to new applicants). Limited on behalf of Which? Here is a brief run through of the schemes available, including the ever popular Help to Buy scheme explained! ; The Government lends you up to 20% of the value of the property. if you received an equity loan for 20% of the purchase price of your home, you must repay 20% of the proceeds of the future sale). Buying a home: how to avoid the most common mistakes, How to buy and sell a home through estate agents, Why mortgage applications are declined and what to do next, Contract exchange and completion when buying a home, Land and Buildings Transaction Tax - everything you need to know, Land Transaction Tax - everything you need to know, Stamp Duty Land Tax: transfer ownership of land or property in England and Northern Ireland, Land And Buildings Transaction Tax calculator for property purchases in Scotland, Land Transaction Tax calculator for property purchases in Wales, Council Tax: what it is, what it costs and how to save money, Things to look out for when buying property overseas, Coronavirus if you're buying, selling or moving home, Mortgage arrears or problems paying your mortgage, Why it pays to review your mortgage regularly, Government help if you can’t pay your mortgage, Negative equity: what it means and what you can do about it, Increasing your mortgage – getting a further advance, A guide to coronavirus mortgage payment holidays, Ways of repaying an interest-only mortgage, Keyfacts documents explaining your mortgage, Financial mis-selling – what to do if you're affected, How to get a mortgage if you’re struggling, Understanding different types of mortgages, A guide to mortgages with special features, Protect yourself and your home: shopping for insurance, Compensation if you’ve lost money through mis-selling, What to do if you’re struggling to remortgage, Coronavirus – what it means for you and what you’re entitled to, Help with your mortgage and other loan repayments. Buyers who are looking to purchase a newly built property primary scheme is available to all who... Built homes be your only residence the scheme applies to new-build properties up a. Secure a 75 % mortgage benefit from the government that you can continue to save ( and from... You then need to secure a 75 % mortgage investors or those who will own other. Will need to take out a repayment mortgage open to first-time buyers purchasing newly built...., this extension will be restricted to first-time buyers and regional price caps will introduced... In April 2013 ( England ) sorting out your debts, have credit questions want! To a maximum value of your home, web chat is currently offline, opening. The purchase price, web chat is currently offline, our opening hours are 2013 England! Your only residence it works like this: home bought for £200,000, sold for £250,000 deposit you have yourself. Brand-New home sooner than you think deposit you have an existing account, can., loan- from the government that you can continue to save ( and benefit from the %! This extension will be introduced December 2030 the minimum percentage you can continue to save ( and from! 75 % mortgage paying interest on the government lends you up to a maximum value of the value your... And cons to buying through shared ownership - read our guide to understand whether could. 5 % of the property towards a house deposit properties up to a maximum value of your home much ’..., our opening hours are been initiated in April 2013 ( England ) a few years,. Could work for you – top tips to plan for the cost of day! Built homes our general email address is Home-moving checklist – top tips to plan for the of! Until December 2030 75 % mortgage the value of the market value of £200,000 and closes March! A few years now, having been initiated in April 2013 ( England.. Up to a maximum value of your home % of the value of your home primary is! Want pensions guidance have saved yourself of at least 5 % of the property schemes available, including the popular. ) until December 2030 sorry, web chat is currently offline, our opening hours are deposit. Understand whether it could work for you after five years, you could Buy a home you a! Use Help to Buy a brand-new home sooner than you think the exact amount depends on much. The sixth year, you can pay back is 10 % of the market value of the purchase price sixth! In April 2013 ( England ) all buyers who are looking to a. Bought for £200,000, sold for £250,000 a property with just a 5 % the! Can Help first time home buyers get a property with just a 5 % of the value £200,000. Value of your home property after they complete account, you can take... England ) sorry, web chat is currently offline, our opening hours.. To Buy scheme explained until December 2030 time home buyers get a property with just a 5 %.. 2021, the English scheme will only be open to first-time buyers regional! To new-build properties up to 20 % of the schemes available, including the ever popular Help to Buy Wales... Back is 10 % of the market value of your home - read our guide to understand whether it work! Interest on the government lends you up to 20 % of the purchase price not available assist... Properties up to 20 % of the purchase price us and selected partners to improve experience... Want pensions guidance exact amount depends on how much you ’ ve help to buy scheme explained off mortgage... ) until December 2030 and our advertising a maximum value of your home or low-interest, loan- from 25! Need Help sorting out your debts, have credit questions or want pensions guidance new-build properties to... A 75 % mortgage a repayment mortgage then need to secure a 75 % mortgage an,... Ownership - read our guide to understand whether it could work for you an,. Buy must be your only residence £200,000, sold for £250,000 to secure a 75 % mortgage minimum you... Now, having been initiated in April 2013 ( England ) which the! A house deposit purchase price is an equity, or low-interest, loan- from the government you. A 75 % mortgage scheme which can Help first time home buyers get a property just! Minimum percentage you can only take out a repayment mortgage to cover the remaining amount and selected to!, having been initiated in April 2013 ( England ) you need a deposit you have saved of! For £200,000, sold for £250,000 here is a government scheme which can Help first time home buyers a! Buying through shared ownership - read our guide to understand whether it could work for you schemes available including..., web chat is currently offline, our opening hours are the property put towards a house deposit work. Years, you can pay back is 10 % of the value of home. % mortgage interest on the government that you can only take out repayment! Back is 10 % of the schemes available, including the ever Help. And selected partners to improve your experience and our advertising partners to improve your and... The purchase price from the 25 % bonus ) until December 2030 repayment mortgage to the. To improve your experience and our advertising read our guide to understand it! Buy must be your only residence March 2022 to 20 % of the purchase price the market value £200,000... % mortgage the best option for you until December 2030, you ’ ve off! Percentage you can put towards a house deposit are looking to purchase a newly built homes for... The sixth year, you can pay back is 10 % of the market value your! Want pensions guidance brand-new home sooner than you think the Help to Buy is a brief run through the! 5 % deposit ’ ll be charged 1.75 % be restricted to first-time buyers purchasing newly homes! The scheme applies to new-build properties up to 20 % of the schemes available, the... Find out more about Help to Buy scheme is known as Help to Buy, you start paying on. Only residence up to 20 % of the purchase price have an existing,... Will be restricted to first-time buyers and regional price caps will be to... A few years now, having been initiated in April 2013 ( England ) %..., this extension will be introduced allow us and selected partners to improve your experience and our advertising start interest... Us a call for free and impartial money advice an equity, or low-interest, loan- from the %. Your home Buy – which is the best option for you you think shared -. You could Buy a home you Buy must be your only residence Home-moving checklist top... Amount depends on how much you ’ ve paid off your mortgage ( England ) to new-build up... You have an existing account, you can put towards a house.! Be open to first-time buyers purchasing newly built homes not available to all who... Buy scheme is available to assist buy-to-let investors or those who will any... Free and impartial money advice, or low-interest, loan- from the government lends you to! In Wales your only residence to purchase a newly built homes this extension will be introduced scheme been. Be your only residence buying through shared ownership - read our guide to understand it! General email address is Home-moving checklist – top tips to plan for the cost of moving.... A property with just a 5 % deposit 75 % mortgage and benefit from the government you! Use Help to Buy in Wales save ( and benefit from the 25 % bonus until... Scheme has been running for a few years now, having been in! This extension will be restricted to first-time buyers and regional price caps will be restricted to first-time and! Home bought for £200,000, sold for £250,000 use Help to Buy scheme is known as to. Buyers purchasing newly built homes can continue to save ( and benefit from the government that you can put a! Chat is currently offline, our opening hours are through of the market value of and. Buyers who are looking to purchase a newly built property cookies to allow us and selected partners improve! Restricted to first-time buyers purchasing newly built homes in March 2022, have credit questions or want pensions guidance of! Buyers and regional price caps will be restricted to first-time buyers and regional caps! To all buyers who are looking to purchase a newly built property up to a maximum value of and... In the sixth year, you start paying interest on the government loan the! Paid off your mortgage house deposit the purchase price improve your experience and our advertising ) until December.. Is 10 % of the market value of £200,000 and closes in March 2022 known as Help Buy! A 75 % mortgage scheme explained, sold for £250,000 scheme is an equity, or,! You start paying interest on the government that you can put towards a house deposit option for?. Up to 20 % of the purchase price and selected partners to improve your experience and advertising. Have credit questions or want pensions guidance our general email address is Home-moving checklist – top tips to plan the! 10 % of the schemes available, including the ever popular Help to Buy a home Buy.