Help to Buy: You asked, we answered…

Taking that first step onto the property ladder is exciting, but many first-time buyers will need some support to secure the home of their dreams, particularly if they don’t have a large deposit.

If that sounds like you, then the government’s Help to Buy Equity Loan Scheme could be just the helping hand you need. With Help to Buy, eligible buyers can secure an interest-free government equity loan for 5 years, worth up to 20% of the value of their dream new home. And Help to Buy is now available at Brabazon!

If you want to find out more about how the scheme works; why not read our introductory blog post here: Help To Buy: Everything you need to know?

But if you already know a bit about Help to Buy, and think it could be right for you, read on to find the answers to some more frequently asked questions about the scheme.

 

1. Am I eligible for Help to Buy?

To be eligible for Help to Buy, you must be 18 years old or over, a first-time buyer, and able to afford the fees and interest payments on your mortgage. You will not be able to use Help to Buy if you have ever owned a home or residential land in the UK or abroad.

In addition, Help to Buy is only available on new homes, like the apartments now available at Brabazon. You cannot buy a second-hand home with the Help to Buy scheme.

2. What properties at Brabazon are available with Help to Buy?

Currently all the remaining two-bedroom apartments at The Navigator Building are available with Help to Buy.

The Navigator Building is the first contemporary collection of apartments at Brabazon. Like all our homes, these two-bedroom properties offer much more included as standard. Feel the warmth of the underfloor heating beneath the engineered oak flooring, relax with little luxuries like illuminated bathroom cabinets or heated towel rails, and enjoy the convenience of having integrated Siemens appliances and allocated parking. To see available properties, click here.

3. What deposit will I need?

Prices for a two-bedroom apartment at Brabazon currently start from £298,500. Eligible first-time buyers can purchase with Help to Buy with a deposit of just 5%:

Example:

  • Purchase Price: £298,500
  • Deposit (5%): £14,925
  • Help to Buy Equity Loan (20% - Interest free for 5 years): £59,700
  • Mortgage (75% Loan-to-Value Ratio): £223,875

4. What happens when the 5 years interest free equity loan period finishes?

The Help to Buy Equity Loan scheme is interest free for the first 5 years. When this period ends – and assuming you either have not sold or re-mortgaged your home - you will be charged interest at a rate of 1.75% in the sixth year. That rate will increase in line with inflation every year in April, with monthly payments spread through the year in the same way as for a ‘standard’ mortgage. We recommend speaking to an experienced independent financial advisor who will be able to discuss your circumstances in detail.

5. Is Help to Buy a shared ownership scheme?

No, Help to Buy is not a shared ownership scheme. When you purchase through the Help to Buy Equity Loan scheme, you own 100% of your home.

6. When will the Help to Buy Equity Loan scheme finish?

First-time buyers can continue using the Help to Buy scheme until 31st March 2023, provided that construction of the property in question has completed by 31st December 2022.

All apartments at The Navigator Building at Brabazon are scheduled to complete in Spring 2022, well in advance of the deadline for the Help to Buy Equity Loan scheme.

7. How do I find the right financial advisor?

We strongly recommend you choose an independent financial advisor that specialises in new homes for your purchase, but it is particularly important when purchasing with the Help to Buy Equity Loan scheme. An independent advisor will be able to assess all of your options, recommend the right mortgage from the whole of the market (not just from your current bank or building society) and handle the forms and administration required by the Help to Buy scheme

Our New Homes Consultants will be able to give you the details of a trusted independent financial advisor from our recommended panel.

To find out more about Help to Buy, or to book a visit to our Show Home, call our New Homes Consultants on 0330 1234 207, or email brabazonsales@ytldevelopments.co.uk