Help to Buy scheme example
Help to Buy: Equity Loan, which is open to first time buyers and movers, will end in March 2021. A new Help to Buy: Equity Loan for first time buyers only will replace it on 1 April 2021.
As with the current Help to Buy: Equity Loan, you can borrow up to 20% in the regions or 40% in London of the cost of a new build home. The amount you can spend on your home will depend on where in England you live.
Homebuyers who may not be eligible for the new Help to Buy: Equity Loan will need to complete the process to buy a new home by 31 March 2021.
For further information on how these changes might affect you, please speak with one of our experienced sales advisors.
Use our calculator guide to find out how Help to Buy: Equity Loan could help you buy a new home with just a 5% deposit.
How much deposit do you have?
The Government could lend you up to 20 of the home value.
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Sorry, the Help to Buy: Equity Loan scheme is not currently available in Wales.You can search for homes in this region without Help to Buy here.
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How long is the current scheme available for?
Where are the schemes available?
The Help to Buy: Equity Loan scheme is available across all Persimmon developments in England up to £600,000. (NB: there are price cap changes from 1 April 2021).
Can you clarify the equity loan element?
In England, HM Government will provide you with a Help to Buy: Equity Loan up to 20% value of the full purchase price of the property. This loan is interest-free for the first five years. From year six you will be required to pay an interest fee of 1.75% of the amount of your Help to Buy: Equity Loan, rising each year after that by the increase (if any) in the Retail Prices Index (RPI) plus 1%.
What are the repayment terms of equity loans under the Help to Buy scheme in England?
You can repay the equity loan any time within the first 25 years (or the term of the mortgage), or when you sell the property. In addition it is also possible to repay part of the equity loan subject to certain limits and criteria.
Are equity loans under the Help to Buy scheme in England available on pre-owned homes?
No, this scheme is only available on new-build homes like those built by Persimmon.
Can I use Help to Buy: Equity Loan if I already own a home?
Yes - this scheme is available to both first-time buyers and existing homeowners. (NB: the scheme is only available to first time buyers after 1 April 2021).
Are equity loans under the Help to Buy scheme in England available under a buy-to-let option?
No - this scheme is only available to purchasers using the property as their main residence.
What types of mortgage are available with equity loans under the Help to Buy scheme?
You must arrange a repayment mortgage.
Where can I get independent financial advice?
Persimmon can put you in touch with a list of recommended independent financial advisers who can assist you every step of the way.
Help to Buy: Equity Loan
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% cash 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
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
Hannah's story - First time buyer
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Images shown are for illustrative purposes only. Elevations and treatments may vary.
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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