Help to Buy & Shared Equity – What is it?
With the Shared Equity Schemes, a shortage of savings will not stop you from getting your dream new build home.
Shared Equity is really a type of shared house purchase.
You buy the property with a normal mortgage from a bank and with a government interest free loan.
You enter into an Agreement with the government which facilitates the future repayment of the government’s loan – usually occurring on the sale of the property.
For example, if the government provides you with 20% of the purchase price – it will be entitled to receive back 20% of any future sale.
The Help to Buy scheme in many cases requires just a 5% deposit and a mortgage of up to 75% of the value of the property. So you pay just 80% of the purchase price now, and the remaining 20% is provided by a Government equity loan.
The important bits:
- You need a minimum deposit of 5%.
- Available for eligible new builds up to the value of £400,000.
- Available to both first-time buyers and those already on the property ladder.
- You must live in the property and it must be the only property you own.
- Your mortgage must be a repayment mortgage.
- The government equity loan is interest free for the term of the loan which could make your monthly mortgage repayments lower.
- At any time you can repay the government’s equity share.
Are you a First time Buyer?
The LIFT Schemes – Shared Equity exclusively for First Time Buyers
The two LIFT Schemes help first-time buyers on modest incomes to buy a home.
In England the Government releases tranches of funding, while in Scotland £70 million funding for the Schemes in the financial year 2015-2016. It Is always worth keeping in contact to ensure that when the funds are released you secure the deal before others do.
LIFT Open Market Shared Equity
- Any first time buyer can apply.
- The Government are providing substantial extra funds to increase eligibility.
- You take a stake of between 60 and 90 per cent with the rest of the balance being a government loan provided through a social landlord who assesses your application.
- Purchase price limits are set in accordance with the region where you want to buy.
LIFT (Or Others Scheme) New Supply Shared Equity
- The New Supply Shared Equity Scheme assists first-time buyers to purchase a new build home either a builder or from a Housing Association or a Housing Cooperative.
- The Government gives grants to registered bodies to help them build new homes.
- You can get details of low cost initiatives available within your local authority from HBC.
Interested? Just ask Us
We can use all of our expertise to help you secure your new home. Just contact our Property Team and we promise to keep it as smooth and as uncomplicated as possible, every step of the way.