Everything You Need to Know About Help to Buy7 April 2017
Help To Buy is available exclusively on new build homes, so it’s wise to read up on the scheme if you are interested in buying a new build home in beautiful Devon.
What is the scheme?
It is a government strategy that aims to help first-time buyers and existing homeowners secure a property with a deposit as little as 5%.
Essentially, it is an equity loan, which the government will lend buyers who want to purchase a new build property.
If you apply for the scheme, you can only take out a repayment mortgage. This means the mortgage guarantee offered through the government initiative can be a reassuring safety net to those new to the world of property.
Are there any instances when the scheme isn’t available?
There are some cases in which you wouldn’t be eligible to use the scheme. If you were looking to buy a second home in Devon or a property to rent out, the scheme wouldn’t be available.
This government strategy is also only available on properties up to a certain price. In England, the scheme is available on properties costing up to £600,000. Some of our properties are available through the Help to Buy scheme – simply speak to a sales executive about your options.
How might the scheme look when broken down?
Let’s say you’ve found your ideal new home in North Devon and the asking price is £300,000.
The deposit required would be £15,000 (5% of the property’s total price).
The equity loan would cover £60,000 (20% of the total).
The mortgage would then stand at £225,000 (the remaining 75% of the cost of the property).
For the first five years after your purchase, you won’t be charged any interest on your mortgage.
After that point, the interest rate will be 1.75% of the loan.
After seven years, the rate of interest will increase from 1.75% to 1.75% + RPI + 1%, where RPI is inflation based on the Retail Prices Index.
If you would like to make your dream new home in North Devon a reality, be sure to register your interest in our upcoming Mazzard View development in Landkey. You read more information about Help To Buy in Devon here [link to the new page] or visit the Gov.uk site.