Help with Market Housing
Equity Loan Scheme
This scheme is for new build properties only
You buy 100% of a new home from a registered developer. You only have to raise 80% of the purchase price initially. The Help to Buy Equity Loan scheme is open to both first time buyers and existing homeowners. There is no income cap for applicants and you can buy a new-build property with a value of up to £600,000.
The scheme helps you to buy your home with an equity loan of up to 20% of the full price of the property although lenders usually require you to have a deposit of 5%, leaving you typically with a 75% mortgage.
You do not have to pay any interest charges on your equity loan for the first five years and from year six you will start paying a monthly administration charge.
This scheme is also known as part buy/part rent
You normally buy a share between 25% and 75% of a new home from a registered provider then pay a subsidised monthly rent to the housing association. The share you buy is calculated by the registered provider or help to buy agent. You will need to raise a mortgage for the share you want to purchase unless you have sufficient savings of your own to buy your share outright. Please note that for some shared ownership properties require you to show a local connection to the area.
Website address is: https://www.helptobuymidlands.co.uk/
Availability: Area England Only
If you are a first-time buyer the Starter Homes scheme helps you buy a new-build home with a 20% discount. The maximum cost of a home outside of London is £250,000. Starter Homes may not be available in your local area.