Help to Buy: Equity Loan Myths
Whether you're renting, still at your parent's house or sharing with a friend, the Help to Buy scheme is an initiative significant in assisting first-time buyers onto the property ladder and letting them secure a home to be proud of. Since the scheme launched over 120,000 people have used it successfully.
The Help to Buy: Equity Loan works by the Government lending buyers up to 20% of the cost for a newly built home, resulting in a 5% cash deposit and a 75% mortgage for the rest of the payment. In addition to this, participants won't need to begin payment of the 20% Government loan for the first 5 years of the purchase.
At Berkeley Group, we provide a helping hand in securing your new home with a number of our properties participating in the scheme. If you're unsure about how to make the most of Help to Buy, we've answered some common myths below.
Myth: The Help to Buy Scheme is only for first time buyers
This is one of the most common myths we've heard, but both first time buyers and existing home owners are eligible for the Help to Buy: Equity Loan Scheme to purchase a newly built home for up to £600,000 with a standard mortgage and 5% deposit, providing they are not buying to rent. You must also not have another property in your name before the completion date.
Myth: My salary isn't high enough to qualify for the scheme
There is no minimum or maximum earnings cap for the Help to Buy scheme. It has been designed so that owning your own home is not dependent on a large salary or inheritance. Providing you can secure a standard mortgage and 5% deposit for a newly built home, you are eligible for the scheme.
Myth: If I purchase a home using the Help to Buy scheme, I will struggle to sell it in the future
If you have not already repaid your loan (if you have, then you can sell your home in the regular way), you will need to have a valuation completed on the house and repay the equity loan which is based on the market value of your property at the time of selling.
Myth: Getting approved can be a long process
Applications for the scheme can be approved in a week, meaning from start to finish, the process can take only a few weeks for you to be settled in your new home.
Myth: The Help to Buy scheme isn't available in London
This is not true and in fact, in addition to securing a 5% deposit for a newly built home in London, homeowners looking to move as well as first time buyers can acquire a Government equity loan for up to 40% of the house purchase price.
Myth: You have to organise the scheme application yourself
The Help to Buy: Equity Loan scheme is run by Government-appointed agents that are trained specifically to help and support you with your application and new home purchase. If you are interested in enquiring about a Berkeley Group home available with the scheme, our team will be delighted to help you get started with the process to make the move into your new house as smooth as possible.
To find out more about the scheme and which of our homes are available to purchase with Help to Buy, please visit our Help to Buy page here.