Help to Buy Scheme

Through the Help to Buy scheme, you can purchase a home with as little as a 5% deposit. It is available throughout the UK, and although the scheme rules differ slightly depending on your location, our experienced advisors can help determine whether Help to Buy is right for you.

Help to Buy in Scotland comprises two schemes: The Help to Buy (Scotland) Affordable New Build Scheme, and the Small Developers New Build Scheme. The first is for larger home builders, and the second for smaller developers. Both have identical rules, and are designed to help first time buyers and current owners purchase a home through a shared equity agreement. With your 5% deposit (if one is required by your lender), the government provides an equity loan of up to 15% of the value of the property, meaning you only need to get an 80% mortgage. This enables people who would otherwise be unable to afford a home to get onto the property ladder.

The scheme differs from other shared equity ownership arrangements whereby you retain 100% ownership of the property. The government funded portion is interest free for the duration of the loan (or for the first 5 years in England), and is repaid once the property is sold.

In England, you have a few different scheme options available to you. Shared Ownership enables you to buy a share of between 25-75% of your home’s value, and pay rent on the remaining share. You can purchase larger shares later as you can afford them. With the Equity Loan scheme you can borrow up to 20% of the cost of your new build home (up to 40% in London), so you only need a 5% deposit and a 75% mortgage to cover the rest. You will not be charged loan fees on the borrowed portion for the first 5 years of the loan.

Speak to our expert advisors today to find out whether Help to Buy is right for you!