Help to Buy
Help to Buy can be used by new buyers and home movers to purchase a new home they live in, that costs up to £300,000 in Wales and £600,000 in England. This means that anyone buying and moving into a new house is eligible, not just first time buyers.
With a Help to Buy: Equity Loan the Government lends you up to 20% of the cost of your newly built home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest. You won’t be charged loan fees on the 20% loan for the first five years of owning your home.
When in the future you decide to sell the house you bought with the bonus, and in the example above, say it sells for £210,000, you’d get 80% of the selling price back from your mortgage and the cash deposit (£168,000) and you’d need to pay back the 20% of the selling price (£42,000) on the loan. You will need to pay off your mortgage with your share of the money before you can finance any further property purchase.
When you are close to buying your home, you will need to instruct your solicitor or conveyancer to apply for your government bonus. Once they receive the government bonus, it will be added to the money you are putting towards your first home. The bonus must be included with the funds consolidated at the completion of the property transaction. The bonus cannot be used for the deposit due at the exchange of contracts, to pay for solicitor’s, estate agent’s fees or any other indirect costs associated with buying a home.
PLEASE NOTE: The Help to Buy: ISA which ends on 30 November 2019 will be replaced by a Lifetime ISA (LISA), for people aged between 18 and 39 to save for a home or retirement. More information to follow.
Pure Homes is a registered eligible builder in the Help to Buy scheme for new homes.
There is more information on buying a home in England here. And in Wales here.