About Help To Buy Mortgages
The Help to Buy Equity Loan scheme was launched in 2013 to help first-time buyers or people finding it difficult to move up the rungs of the property ladder, Financial Advice Cardiff. Both first-time buyers and people looking to move are eligible for the Help to Buy Equity Loan, however it is only available on new-build properties in England and Wales.
How it Works
You provide 5% deposit. The government then lends up to 20% of the property price (or 40% if you are buying in London). This part is called the equity loan and is usually interest free for the first five years, the remaining 75% can then be funded by a suitable mortgage.
Eligibility for Help to Buy Loans are assessed in similar way to a mortgage application. Equity Loans can be secured on new build properties up to £300,000 in England and Wales, and as much as £600,000 in London.
Your home may be repossessed if you do not keep up with repayments on your mortgage.
Think very carefully before securing debts against your home. Your mortgage is secured on your home. If you do not make your mortgage payments, you could lose your home.