Help to Buy Mortgages


Help to Buy is a Government backed initiative to help first time buyers and those people wanting to move to a larger property or to purchase a larger property with as little as a 5% deposit.


There are 2 schemes available – the Equity Loan scheme which is available for new-build property only and the Help to Buy ISA scheme for new and used property.




Equity Loan – Launched in April 2013, this scheme offers the opportunity to borrow an additional 20% of the purchase price from the Government which is interest free and has no repayments for the first 5 years. At the end of the 5 year period, the loan then becomes repayable over the remaining term of the mortgage and interest is then charged. Lump sum payments can be made towards reducing the equity loan with the guidelines of the scheme. This scheme is only available in England for new-build properties up to a maximum value of £600,000 and only applies to property being built by house-builders who have registered and been approved by the Government. Most national and many local house-builders are approved.


To qualify for an Equity Loan Help to Buy Mortgage, you must have a minimum deposit of 5% plus additional funds to pay for stamp duty, legal and other costs and qualify for a mortgage for the balance of the purchase price from a lender who is participating in the Help to Buy scheme. You cannot be the owner of an existing property.


Help to Buy ISA – A Help to Buy ISA is a government scheme designed to help you save for a mortgage deposit to buy a home. To qualify you must be classified as a first-time buyer and not own a property anywhere in the world.


Savings are tax free just like with any ISA product, however, a Help to Buy ISA gives you the added bonus of getting government contributions. The government will top up any contributions you make by 25%, up to the contribution limit of £12,000. So, for every £200 you save, the government will contribute £50. This means you can earn a maximum of £3,000 from the government. The minimum amount you need to save to qualify for a government bonus is £1,600 (which gives you a £400 bonus).


You can start off your ISA with an initial deposit of up to £1,000 which also qualifies for the 25% boost from the government. Help to Buy ISAs are available to each first-time buyer, not each home. So, if you’re buying a property with your partner, for example, you’ll be able to get up to £6,000 towards your deposit.


Both these schemes are not complicated but it’s very important to understand what is best for you –a Help to Buy mortgage or a standard mortgage. We are experts in providing you with the best advice to ensure you make the right choice. We recommend an initial meeting when we can understand your requirements and advice you accordingly.


In need of a Help to Buy Mortgage?

For more information on Help to Buy Mortgages, Contact Us today.


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Your property may be repossessed if you do not keep up repayments on your mortgage.


This firm usually charges a fee for mortgage advice. The amount of the fee will depend upon your circumstances and will be discussed and agreed with you at the earliest opportunity.