Help to Buy scheme example
Help to Buy: Equity Loan is a Government-backed scheme that aims to make mortgages more readily available to those who can't afford a large deposit.
Available to first-time buyers and people already on the property ladder, the Help to Buy: Equity Loan scheme requires just a 5% deposit and a mortgage of up to 75% of the value of the property.
So you pay just 80% of the property price now, and the remaining 20% is provided by a Government equity loan. This is interest-free for the first 5 years which could make your monthly mortgage repayments lower.
Help to Buy: Equity Loan is open to everyone - whether you’re a first-time buyer or looking to move up the property ladder.
What is Help to Buy and how can it help you?
Use our calculator to find out how Help to Buy can increase your budget, and help you move house with just a 5% deposit.
How much deposit do you have?
The Government could lend you up to 20 of the home value.
Search for Help to Buy properties* with your new budget of . Enter your location and then look for the Help to Buy indicator
Sorry, the Help to Buy scheme is not currently available in Wales.You can search for homes in this region without Help to Buy here.
Search for Help to Buy properties* with your new budget of . Press the 'Find home' button below then look for the Help to Buy indicator
Where is the scheme available?
Help to Buy: Equity Loan is available across all Persimmon developments in England on homes up to £600,000 and up to £300,000 on homes in Wales.
Can you clarify the equity loan element?
The Government will provide you with an equity loan up to 20% value of the property. This loan is interest-free for the first five years. From year six a fee of 1.75% is payable and will rise annually by RPI inflation plus 1%.
What are the repayment terms of the Help to Buy: Equity Loan?
You can repay the loan any time within the first 25 years (or the terms of the mortgage), or when you sell the property.
Is the scheme available on pre-owned homes?
The Help to Buy: Equity Loan scheme is only available on new-build homes like those built by Persimmon.
Can I use the scheme if I already own a home?
The Help to Buy: Equity Loan scheme is available to both first-time buyers and existing homeowners.
Is the scheme available as a buy-to-let option?
The Help to Buy: Equity Loan scheme is only available to purchasers using the property as their main residence.
What types of mortgage are available with Help to Buy: Equity Loan?
Repayment mortgages are the only option with this scheme.
Where can I get financial advice from?
Persimmon can put you in touch with a list of recommended financial advisers who can assist you every step of the way.
Help to Buy: Equity Loan - England
Help to Buy: Equity Loan scheme is available on plots in England, with a full purchase price up to £600,000, subject to status. Eligible applicants will be offered an equity loan of up to 20% of the purchase price at the open market value. Applicants are required to fund at least 80% of the purchase price with a conventional main mortgage and minimum of 5% deposit. For the first five years there is no interest charged on the equity loan. At the start of year six, 1.75% interest is payable on the equity loan, which rises annually by RPI inflation plus 1%. The equity loan is provided by the Government's Homes and Communities Agency (trading as Homes England), and held as a second charge on the Help to Buy home. Terms and conditions apply. Applicants should seek independent financial advice, and get information and guidance on applying for a Help to Buy: Equity Loan at www.helptobuy.gov.uk
Help to Buy: Equity Loan - Wales
The Help to Buy: Equity Loan - Wales scheme has specific terms and conditions and is subject to affordability criteria as defined by the Welsh Government. Help to Buy: Equity Loan - Wales scheme is available on plots in Wales, with a full purchase price up to £300,000, subject to status, terms and conditions apply. Help to Buy: Equity Loan - Wales eligible applicants will be offered an equity loan of up to a maximum of 20% of the purchase price (based on the open market value). The registered provider will hold the second charge on the property. Applicants are required to fund at least 80% of the purchase price by means of a conventional mortgage, savings and any deposit where required. Applicants must obtain their conventional mortgage from a qualified lending institution (e.g. a bank or building society). For the first five years there is no fee charged on the equity loan component. At the start of year six a fee is collected of 1.75% of the market value of the property at the time the loan is entered into multiplied by the outstanding percentage under the equity loan, the annual fee of 1.75% will be uplifted by RPI +1% p.a. Visit: beta.gov.wales/help-buy-wales for further information.
**Available on selected plots subject to status. Terms and conditions apply.
A professional legal adviser is required to carry out the legal formalities of buying the home and to represent your interests. Persimmon can provide you with a list of recommended solicitors and/or financial advisers as necessary. Persimmon cannot advise you on a mortgage. The Help to Buy: Equity Loan scheme is subject to availability and may be withdrawn at any time without notice. Not to be used in conjunction with any other purchase assistance scheme, offer or promotion. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE, YOUR EQUITY LOAN OR OTHER DEBT SECURED ON IT. For full details on the Help to Buy: Equity Loan scheme please visit www.helptobuy.gov.uk
A short video providing an introduction to the Government-backed Help to Buy scheme in England.
Hannah's story - First time buyer
Emily's story - Moving up
Roger's story - Existing homeowner
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The prices shown are correct at the time of being published but are subject to change without prior notice, please contact our Marketing Suite for accurate price information.
Site layouts are intended for illustrative purposes only, and may be subject to change, for example, in response to market demand, ground conditions or technical and planning reasons. Trees, planting and public open space shown are indicative, actual numbers and positions may vary. Site plans does not form any part of a warranty or contract. Further information is available from a site sales advisor.
The dimensions shown are approximate and the precise measurements may vary.
For full details on the HM Government-backed Help to Buy: Equity Loan scheme please visit www.helptobuy.gov.uk.
Every effort has been taken to ensure the information provided here is accurate however, particulars regarding local amenities and their distances are for general guidance only. Where schools and other educational facilities are mentioned they are intended to highlight their distance from the development and don’t represent a guarantee of admission or eligibility. Travel times and distances assume journeys are made by car. Times are likely to vary according to travel conditions and time of day.
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