You might be looking for more space, the latest in home design, or just a new location, but not everyone can afford a newly built home on their own. The government created the Help to Buy scheme, which could help you in purchasing your own Risby home.
How does it work?
The Help to Buy scheme means that anyone can purchase a newly built home, not just first time buyers. The government will lend movers up to 20% of the overall price of their new home, and there are no loan fees for five years after you move in.
So, for a home that costs £200k, you could borrow up to £40k to help you move.
There is no minimum loan, and the maximum is £120k.
Help to Buy has supported many people in moving into the newly built home they didn’t think they could afford, partly because the scheme often comes with a more desirable interest rate.
What will I need?
To cover the rest of the costs, you’ll need a deposit and a mortgage adding up to 80% of the total price of your new home.
The minimum deposit is 5%, in which case you would need a mortgage of 75% of the cost. But, if you have a bigger deposit, your mortgage will be less.
What if I move?
If you sell your home, you will have to fully pay back the percentage you borrowed.
For example, if you borrowed a 20% loan when you bought your home, you will have to pay back 20% of what your home is worth when you sell. If your home is worth more when you sell, you’ll have to pay back a little more than you borrowed.
If you choose to stay put, you’ll need to pay back your equity loan after 25 years.
Before you begin the buying process, you’ll have to speak to a local Help to Buy agent, who will assess your purchase for the Help to Buy scheme.