Big news that the Help To Buy scheme planned for January next year has been brought forward to this week. So what is it all about?
This Help To Buy scheme will allow buyers, (first time buyer or home movers) to buy a property with just a 5% deposit. There are limit/terms and conditions, such as maximum price £600,000, no buy to lets etc. but essentially the government is guaranteeing part of the loan, allowing the lenders to offer the mortgage deals with reduced risk.
There is no product information yet and even the largely state owned Lloyds Banking Group has had no formal communication regarding their products and availability, so watch this space for more news and information.
The existing Help To Buy scheme provides an equity loan of up to 20% of the purchase price of a new build home. Applicants still have to put down a 5% deposit, but it has to be for the purchase of a brand new property. The equity loan is interest free for the first 5 years.