Help to Buy Equity Loan Scheme
The Help to Buy Equity Loan scheme is open to both first time buyers and existing homeowners. There is no income cap for applicants and you can buy a new-build property with a value of up to £600,000. The scheme helps you to buy your home with an equity loan of up to 20% of the full price of the property. You won't have to pay any interest charges on this loan for the first five years and you own 100% of your own home from the start.
How does the equity loan work?
You buy 100% of your new home from Wheeldon, but it's more affordable because you only have to raise 80% of the purchase price yourself initially.
The remaining 20% is covered by an 'equity loan' from the government. This loan is 'interest free' for the first five years. From year six, you'll start paying a monthly fee.
You'll need to be able to find at least 80% of the property price through a conventional mortgage with a lender. But lenders usually require you to have a deposit of at least 5%, your mortgage will typically be for 75% of the purchase price.
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