What is Help to buy?
Help To Buy is a government run scheme for First Time Buyers buying new build properties. It works in a way that you would put a 5% deposit down and the government put in 20% so that your entire deposit amount equates to 25%. This opens up a lot more offers on your mortgage and can keep the interest rates lower than if you were putting in only 5%-10%. The loan that the Government grant you is interest free for the first 5 years, and the term of the loan is 25 years- so you have plenty of time to save whilst knowing that you own your own home outright.
There are stipulations on the maximum purchase price dependent on where you are in the UK and the developer and site that you purchase from do need to be signed up for the scheme, so it isn’t a given that you can use it if buying new.
Help To Buy London
Help To Buy London works in the exact same way, however, the property price is a maximum of £600,000 and the Government are willing to put in an equity loan of up to 40% of the property price.