Help to Buy
What is the Help to Buy Equity Loan Scheme?
This scheme offers a 10%-20% equity loan funded by the Government through the Homes and Communities Agency (HCA) on new build properties.
The equity loan is interest free for the first 5 years, after this, a fee of 1.75% rising annually by the increase (if any) in the Retail Price Index (RPI) plus 1% (please see the Help to Buy Buyer's Guide for examples).
The investment announced in the recent Budget review will allow the scheme to run for approximately three years (subject to funding).
Who is eligible?
This scheme is now available to all buyers (rather than just first time buyers)
- You must be able to obtain a capital repayment mortgage (advised 25 year term) with a qualifying lender
- You must have access to a minimum 5% deposit (if one is required by your first charge lender) and be able to cover your legal fees
- Your Help to Buy equity loan property must be your only property prior to legal completion and is not available to buy-to-let investors.
Maximum purchase price = £600,000
There is no limit on the number of bedrooms
Maximum Developer reservation fee = £500 (this will be refundable if the buyer is not accepted on the scheme)
The builder may offer incentives to the value of no more than 5% of the purchase price
How to apply - don't worry, we will guide you through step-by-step
Read the Help to Buy Buyer's Guide
Step 1: Select the Newland Homes property that you wish to buy.
Step 2: Complete the Property Information Form (available from the Newland Homes Sales Office or on-line) which will also be your application form.
Step 3: Contact a South West Homes Approved Financial Advisor. Newland Homes can suggest an Independent Financial Advisor (IFA) who is familiar with the scheme and will be able to help you through the application process. The IFA will confirm your financial status.
Step 4: Submit the Property Information Form and the Newland Homes Reservation Form via one of the following options:
Fax: 0870 490 8959
Post: South West Homes, Unit 11, Brabazon Office Park,
Golf Course Lane, Filton, Bristol BS34 7PZ
Step 5: South West Homes will issue a Form of Authority to Proceed within 4 working days which will give you further instructions (more information on the process can be found on pages 7-8 of the Help to Buy Buyer's Guide)
Step 6: Let Newland Homes know that you have the Form of Authority to Proceed as soon as possible.
PLEASE NOTE You should not apply for your mortgage prior to receiving the Form of Authority to Proceed
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
Check that these mortgages will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.