12th August 2018
Help to Buy (London) is a scheme through which first time buyers and home movers on new build homes could borrow up to 40% of their purchase price from the Government. The buyer will need to be able to contribute at lease 5% of the property as a deposit, with a mortgage of up to 55% to cover the rest.
The Loan is granted for a maximum of 25 years and no interest is charged for the first 5 years of owning the new home, there is however a £1 monthly management fee that will be applicable from completion of the purchase.
If you find the perfect property, and all the numbers add up, it is a great way to get onto the property ladder. One of the downsides however, is that in order to qualify, the property has to be a new build property, therefore, depending on where you’re looking, you may not be able to find a qualifying property to buy.
Another downside is that when you come to sell, the government will benefit from any rise in value of the property as you will have to repay the same percentage of sale proceeds as the percentage they lent on the purchase price.
In the grand scheme of things, I think we can all agree that the pitfalls are actually not so bad and the equity loan is more of a help than a hindrance. If you are considering purchasing with the help of the HTB Loan, we have a team with a wealth of experience that would be happy to help.
Do not hesitate to call us on 020 3475 4321.
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