Help to Buy Scheme update
October 02, 2016
Help to buy hit the headlines recently when it was announced on 29th September 2016 that the scheme would be closing later this year.
This announcement has led to some confusion about the Help to Buy scheme however, following the information portrayed in the headlines, we can confirm that only the Help to Buy Mortgage Guarantee scheme is going to cease at the end of 2016 as planned.
The Mortgage Guarantee Scheme meant that buyers only needed to find a deposit of 5% of the value of their home, with a mortgage covering the remaining 95%.Figures reveal that more than 86,000 households have been supported by the initiative however the Government says it is no longer needed as confidence has returned to the market, with more private lenders offering 90% to 95% mortgages.
Other Help to Buy schemes including the Help to Buy Equity Loan scheme available on new build only, shared ownership and the Help to Buy ISA bank account – will continue to operate for the foreseeable future. The Help to Buy Mortgage Guarantee scheme was always intended to only be available until 31st December 2016.
The Help to Buy Equity Loan will continue to be available and is excellent for those looking to move home into a new build property that is no more than £600,000.
For the Help to Buy Equity Loan, as long as you have a 5% deposit, you can borrow 20% of the purchase price, interest-free for the first five years. After five years, the interest rate will be 1.75% by RPI, increasing by another 1% each year.
Ryder & Dutton currently have a number of new developments offering the Help to Buy Equity Loanscheme – allowing purchasers to buy a brand new home with only a 5% deposit, and then borrow up to 20% of the property price through an equity loan.
Rebecca Heselwood, New Homes sales Manager from Ryder & Dutton comments, ‘The Help to Buy Equity Loan Scheme has and still is proving to be a very popular scheme with over 80% of all our purchasers taking advantage. Please call our New Homes Department now on 0161 925 3235 for further information about the developments we currently have available that are offering Help to Buy and we would be happy to answer any of your questions about the scheme’.
For details of all our New Homes sites currently available you can also CLICK HERE.