Help to Buy

Help to Buy could make moving up the property ladder easier

Help to Buy

If you’re a first-time buyer or you’re finding it difficult to move up the property ladder, Help to Buy could make it easier. But is it the right option for you?

At J Finance, our friendly experts offer independent advice on all aspects of the scheme, tailored to your own unique circumstances.

At J Finance, we can offer you tailored advice based on your own financial position and future plans – why not give us a call to book a consultation?

Contact us today for Help to Buy advice in Berkshire.

 

What is Help to Buy?

It is a government-backed scheme that aims to help people who would otherwise struggle to save the amount needed for a deposit on a property, or who have limited equity, making it difficult to generate the funds to buy a new home.

The scheme provides several ways to make home ownership more accessible to would-be buyers.

Saving for a deposit

The scheme offers eligible first-time buyers a savings boost in the form of the Help to Buy ISA. This is a savings account where the government will chip in with bonuses of £50 for every £200 you save (with a maximum bonus of £3,000). It means that if you were to take full advantage of the bonuses, your savings of £12,000 would be raised to £15,000.

Equity loan

Even with the aid of a government bonus, saving for a deposit isn’t easy. But with cash savings of just 5% of the total value of the property, a Help to Buy Equity Loan mortgage could get you on the property ladder.

Equity loans of up to 20% of the value of your new home (40% in Greater London) are available at favourable rates, with no fees or interest payable for the first five years. The interest you pay after that maybe lower than the interest payable on a standard loan.

Mortgage Calculator

Take a look at our Mortgage Calculator to work out your monthly payment, just click on the button below:

Mortgage Calculator

 

Shared ownership

Rising property prices mean that buying a home is out of reach for many people. With shared ownership, however, eligible buyers are given the option of buying a share of a property, rather than getting a mortgage for 100% of its value.

Under the shared ownership scheme, you can choose to buy a share of between 25% and 75% of the value of your home. It’s an opportunity for households on a lower income to of get a foot on the property ladder, with the option of extending their share at a later date. When you opt for shared ownership, you pay rent on the remaining proportion of the property that you haven’t yet bought.

Is Help to Buy the right scheme for me?

Help to Buy has certain restrictions and stipulations, so it’s not open to everyone. You might be eligible for some elements and not others – for example, you might meet all the criteria to get an equity loan, but not be eligible for shared ownership. You’ll need to consider your own preferences too: the shared ownership scheme only covers leasehold properties, for example, which may not match your needs.

Help to Buy Scheme Logo