Blog
24 | 12 | 19
All you need to know about the Help to Buy Equity Loan Scheme
If you dream of owning a home one day but can’t come up with the hefty deposit, know that you’re not alone. Let’s face it: a saturated rental market, a shortage of homes and high living costs all contribute to the fact that buying a home these days is not as easy as it used to be. Unless, of course, you get a little help from the government – and us.
Thanks to the Help to Buy (HTB): Equity Loan scheme, a new world of possibilities has opened up to prospective homeowners. And, it’s pretty straightforward too, as our handy Six W’s guide will show you.
WHO is eligible?
The scheme is aimed primarily at first time buyers, but if you’re a homeowner looking to move, you’re eligible too, as long as the new home will be your only home. When buying on the HTB scheme, a few conditions apply: new homes can’t be sublet and you can’t enter a part exchange deal on your old home, either. As for the financials, the maximum income multiple for this scheme is 4.5 times your joint or single income household and your mortgage must be on a repayment basis (no interest-free mortgages permitted). All properties available on the HTB scheme are new builds, none exceeding the maximum price tag of £600,000. Take Wyndham Studios for example, our exciting new development in the heart of artistic Camberwell. Available to buy via the HTB: Equity Loan scheme, these design-led homes in London’s Zone 2 are an affordable reality for prospective buyers.
WHAT is it, exactly?
In a nutshell, the HTB: Equity Loan scheme is all about enabling hardworking people to enter the UK property market. What was once an unattainable pipe dream for most is now an affordable reality for many. With as little as a 5% deposit, the government will give you an equity loan for up to 20% of the purchase price – or for the London Help to Buy Scheme, that percentage increases to a generous 40%. So, say you’re buying one of our brand-new Wyndham Studios apartments in London’s Camberwell for £450k, you’d need just £22,500 as a deposit. Then, if you decide to sell this home within the first five years, and say it sells for £482k, you’d get £252k (60%, from your mortgage and the cash deposit) and you’d pay back £188k on the loan (40%). What’s more, you won’t be charged a loan fee for the first five years of owning your home - after that, a fee of 1.75% is payable on the equity loan, which rises annually by RPI (Retail Price Index) inflation plus 1%.
WHEN can I sign up?
With Wyndham Studios launching in Spring 2020, the London HTB scheme has never looked so good. Register now to make sure you are invited to our official launch.
WHY sign up?
Because it saves you from forking out a huge deposit, finally making owning your own home an affordable and achievable goal in a shorter space of time.
HOW can I do this?
To get started, contact your nearest government-appointed Help to Buy agent, who will guide you through the process from start to finish and help you with the application itself. Of course, all HTB applicants must go through a financial assessment, and there’s plenty of guidance on the government website on how to apply for an Equity Loan. Here at FABRICA, we’re always happy to help with any questions you may have regarding our homes under the Help to Buy scheme. For more information about the new studio, 1-, 2- and 3-bedroom apartments at Wyndham Studios, please get in touch with one of our sales team by calling 0800 783 2159 or by completing an enquiry form
WHO is eligible?
The scheme is aimed primarily at first time buyers, but if you’re a homeowner looking to move, you’re eligible too, as long as the new home will be your only home. When buying on the HTB scheme, a few conditions apply: new homes can’t be sublet and you can’t enter a part exchange deal on your old home, either. As for the financials, the maximum income multiple for this scheme is 4.5 times your joint or single income household and your mortgage must be on a repayment basis (no interest-free mortgages permitted). All properties available on the HTB scheme are new builds, none exceeding the maximum price tag of £600,000. Take Wyndham Studios for example, our exciting new development in the heart of artistic Camberwell. Available to buy via the HTB: Equity Loan scheme, these design-led homes in London’s Zone 2 are an affordable reality for prospective buyers.
WHAT is it, exactly?
In a nutshell, the HTB: Equity Loan scheme is all about enabling hardworking people to enter the UK property market. What was once an unattainable pipe dream for most is now an affordable reality for many. With as little as a 5% deposit, the government will give you an equity loan for up to 20% of the purchase price – or for the London Help to Buy Scheme, that percentage increases to a generous 40%. So, say you’re buying one of our brand-new Wyndham Studios apartments in London’s Camberwell for £450k, you’d need just £22,500 as a deposit. Then, if you decide to sell this home within the first five years, and say it sells for £482k, you’d get £252k (60%, from your mortgage and the cash deposit) and you’d pay back £188k on the loan (40%). What’s more, you won’t be charged a loan fee for the first five years of owning your home - after that, a fee of 1.75% is payable on the equity loan, which rises annually by RPI (Retail Price Index) inflation plus 1%.
WHEN can I sign up?
With Wyndham Studios launching in Spring 2020, the London HTB scheme has never looked so good. Register now to make sure you are invited to our official launch.
WHY sign up?
Because it saves you from forking out a huge deposit, finally making owning your own home an affordable and achievable goal in a shorter space of time.
HOW can I do this?
To get started, contact your nearest government-appointed Help to Buy agent, who will guide you through the process from start to finish and help you with the application itself. Of course, all HTB applicants must go through a financial assessment, and there’s plenty of guidance on the government website on how to apply for an Equity Loan. Here at FABRICA, we’re always happy to help with any questions you may have regarding our homes under the Help to Buy scheme. For more information about the new studio, 1-, 2- and 3-bedroom apartments at Wyndham Studios, please get in touch with one of our sales team by calling 0800 783 2159 or by completing an enquiry form
© 2020 A2Dominion Housing Group Ltd