Help to Buy
Help to Buy is a government backed initiative set up to help first time buyers and those looking to move up the property ladder, to purchase a property with as little as a 5% deposit.
Equity Loan With a deposit of 5%, the Help to Buy Equity Loan scheme allows you to borrow an additional 20% of the purchase price of the property from the government; the loan is interest-free for the first 5 years and it can be repaid at anytime. This is an example of how Help to Buy will work for you if you have buyer looking to purchase a property valued at £200,000 and the buyer only has a deposit of 5% or £10,000.
- With a government loan of £40,000 (20%)
- Mortgage required of £150,000 (75%)
- Combined with their £10,000 deposit (5%)
- They can purchase a new build home up to £200,000 (100%) The above calculation is based on the minimum deposit of 5%, they can have a greater deposit if required.
In the 6th year, your buyer will be charged a fee of 1.75% of the loan's value. After this, the fee will increase each year by Retail Price Index plus 1%. All figures are purely indicative and should not form the basis of any purchasing decisions. Only a select number of Banks & Building Societies are providing the Help to Buy mortgages so your buyer will need to speak to our mortgage advisor and complete the application process to find the most competitive product for them.
What properties are included?
To qualify for the scheme, Help to Buy properties must be:
- Priced below £600,000
- Full ownership
- New build
- In England - this scheme currently excludes Wales and Scotland
The Government Equity Loan scheme is only available from approved, participating house builders.
Who is eligible?
To be eligible for a Help to Buy Equity Loan property, you must:
- Be able to demonstrate access to savings or funds to pay, if required, a deposit (which may be between 5% and 55% of the purchase price, legal fees, stamp duty and costs of moving)
- Be purchasing a property costing £600,000 or less
- Have a good credit history
- Take out any mortgage with a qualified lender (e.g. a bank or building society)
- Remove your name(s) from any other property deed prior to or at the point of completion of your new property if you are a home-owner wishing to buy a larger property for your family
How do I apply?
Ask us about our Help to Buy properties.
- Contact your local Home Buy Agent to confirm eligibility (South West Homes), your mortgage advisor can do this for you.
- Choose your new home and reserve with a lower reservation fee of £500 (C G Fry standard is £1,000).
- You will also only be required to pay 5% deposit at exchange of contracts rather than the usual 10%.
*Terms and conditions apply.
- Available on selected properties only.
- Offer not to be taken with any other C G Fry scheme.