London’s Help to Buy Scheme: a breakdown
Getting on the property ladder for the first time can often seem like a daunting task. The task can seem even more enormous when buying in the capital. However, the government is aware of these troubles and has come up with a handy scheme for property newbies to take advantage of: Help to Buy.
The Help to Buy scheme was unveiled in Autumn 2015 and enables you pay a minimum deposit of 5% on new build homes worth up to £600,000; (provided that the developer or scheme being registered with is Help to Buy approved.) To qualify you must be a first or second-time buyer and not own or have a stake in another property. The scheme is particularly good for London-buyers as the government paid equity loan rises from 20% to 40% for those purchasing in the capital. How kind!
The equity loan compensated by the government of up to 40%, which is paid in increments of 10%, is also interest free for the first 5 years. After this period, you will be charged 1.75% of the loans value, increasing by 1% above inflation per year.
Unsurprisingly, since the scheme was introduced two years ago, the number of first time buyers in the UK has risen by up to 60%. Whether buying to let or buying to live, purchasing London property is great for capital growth which can result in a profit when you re-sell later down the line. We offer the Help to Buy scheme in the following developments:
More Help to Buy developments will be popping up over the coming months so please keep checking this page for updates.
The scheme is set to continue until 2023 for now, with the possibility to extend, so you still have plenty of time to take advantage of it. However, with limited properties available on the scheme, they don’t stick around for long. If you’re interested in how you can benefit from Help to Buy, please let us know by filling out the enquiry form below or giving us a call on: 02088969990.