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The Help to Buy equity loan scheme is only available on new-build homes like those built by Bloor Homes. By offering you an equity loan, however, the Help to Buy scheme gives you the chance to buy your first home with a smaller mortgage, even if you only have a 5% deposit. The Help to Buy Scheme helps first-time buyers purchase a newly-built house or apartment. Help to Buy equity loans provide a low-interest loan towards your deposit. Customers need a 5% deposit, and the government lends up to 20% of the value of the home (up to 40% of the value if you are purchasing in London).
To help us improve GOV.UK, we’d like to know more about your visit today. Don’t worry we won’t send you spam or share your email address with anyone. If you are a self-assessed taxpayer, you can apply through Revenue’s Online Service. If you are a PAYE employee only, you can apply for the Help to Buy scheme through Revenue’s myAccountservice. And bear in mind that saving a few pennies on plasterboard will have a significant impact when you need to buy in volume. The couple are also buying elements such as bathroom tiles and plywood at auctions, following tip-offs from fellow self-builders.
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A golden rule for self-build has always been to avoid changing your mind during the process,” he said. Where compromises must be made, do it on kitchens and bathrooms, which are easier to upgrade later, rather than structure, insulation or heating systems. Rent to Buy is open to non-homeowners with an annual household income below £80,000 who can't buy a suitable home without assistance, and don't have any outstanding credit issues.
The equity share and any outstanding service charges must be repaid in full on the sale of the property. You’ll also have to pay a valuation fee if you want to buy back all or part of the equity share. The charge covers maintenance of the First Home scheme and is a percentage of the government’s initial stake. You can get up to 30% of your house price funded by the FHS, however there are price caps, and the cost of your home must be within the price limit of the area. Apply for the Help to Buy equity loan through the relevant government appointed Help to Buy Agent.
How do I pay off the Help to Buy equity loan?
This cap applies regardless of how many people enter into a contract to purchase the property. The government continues to listen to Help to Buy customers and the property industry to understand the challenges and opportunities they face. When homeowners default on their FHA loan, HUD takes ownership of the property, because HUD oversees the FHA loan program. These properties are called either HUD homes or HUD real estate owned property.

You’ll need to provide your personal details, solicitor contact details and information about the property you’re planning to buy. If you are making a joint application, both applicants must be a first-time buyer or fresh start applicant. You can buy back the full equity share in one payment, or buy it back as and when you can afford, to as a minimum of two part-payments per year. Although it’s free for the first five years, from year six you’ll need to pay a service charge. Once you have moved into your new home, you’ll make monthly mortgage payments as agreed with your lender.
What is the Mortgage Allowance Scheme?
New, affordable homes under this scheme are located in areas with the greatest housing need. To qualify, your gross income must be below 85.5% of the market value of the home. The UK Government introduced the Help to Buy scheme to help prospective home buyers to own their own home. It provided assistance to those who could afford to pay a mortgage, but might have trouble finding a property they can afford to pay the deposit on.

However, when selling, the home must be sold to another first-time buyer at 30 percent less than the market value at the time of sale. Kettel Homesinvestment platform aims to help buyers “move in without a mortgage”. Kettel purchases existing freehold single-family homes between £125,000 and £400,000, allowing first-time buyers to step onto the ladder with a minimum deposit of two percent.
You need to assess your finances and ensure that you can manage the repayments. The Central Bank has set limits on the size of residential mortgages. Read more about the Help to Buy Scheme and how to apply on revenue.ie.
Persimmon can put you in touch with a list of recommended independent financial advisers who can assist you every step of the way. Use our online tool to search thousands of deals from more than 80 lenders with the Guardian Mortgage Service, powered by L&C. Once you have the valuation report, you need to provide it to the FHS and request a ‘redemption quote’ which will outline what you need to pay and the next steps. The valuation must be completed by an FHS Approved Valuer who will charge a fee. The valuation is valid for 12 months, so if you want to buy back over several years, you’ll need to get your home revalued.
Over the course of the 36 months, Kettel promises fixed rent prices, and it will also help design a savings plan to build a 10 percent deposit to help the renter buy the home at the end of the rental period. “Our First Time Buyer Boost was created as an alternative to the Help to Buy scheme. It goes without saying that Help to Buy was great at enabling first-time buyers to get onto the property ladder. However, we understood that not every first-time buyer wanted to use the scheme – for example, those looking to purchase with a bigger deposit.
With the end of Help to Buy, some private businesses are starting to offer alternative schemes to help people get on the property ladder. The Help-to-Buy ISA has been closed to new applicants since 2019, but this popular home-buying resource – the Help-to-Buy equity loan scheme, has an end date of March 2023. The Help to Buy equity loan scheme is available only available to first time buyers.. The scheme only applies to properties that are bought or built as the first-time buyer’s home. If you have inherited or been gifted a property it will not affect your eligibility. If you are buying or self-building the property with someone else, they must also be a first-time buyer.
This is the path that Rachel Summerscales and her boyfriend, Pete Lees, are taking. They embarked on a self-build eco house project on a plot of land in a former scrapyard in Saddleworth, near Oldham, in 2016 – and it’s still ongoing. If a quote looks good but the builders can’t start for six months, neither the building company nor the client will want to commit,” said Mr Owen. At the same time, builders are struggling to put accurate sums together for tenders because so much depends on the timescale of the project. “We did the design and planning before the scary things started to happen with prices,” said Mrs Harrington.
This is a Government backed mortgage for first time buyers or other eligible applicants through local authorities. All types of homes qualify, including those in the Tenant Purchase Scheme and Affordable Housing Scheme. Kettel then rents homes back to them at market rates while they save for a deposit, build their credit and expand their affordability. The initial two percent will also be put towards the overall deposit if they choose to purchase. However, housebuilders and property investors are now offering solutions that many could benefit from.
Pros and cons of affordable housing
Our team of experts can see the pros and cons of this scheme – our advice is to invest wisely and you could do well out of it. Bloor Homes can put you in touch with a list of recommended financial advisers who can assist you every step of the way. You will then need to apply for the required mortgage amount (up to 75%). For the first five years of home ownership, you won’t be liable for interest on the Help to Buy Equity Loan. If you are a PAYE employee only, you can apply for the Help to Buy Scheme through Revenue’s myAccountservice. The Help to Buy Scheme gives a refund of the income tax and Deposit Interest Retention Tax you have paid in Ireland over the previous 4 tax years.