Your dream home is within reach with our Help to Buy options.
If you’re finding it difficult to save a deposit for your first home, or having trouble taking the next step on the property ladder, Help to Buy could be the answer. With two types of this government-backed scheme to choose from – Equity Loan and ISA – you’re sure to find the one that’s just right for you.
Help to Buy: Equity Loan
This route helps you buy a new-build home with an equity loan of up to 20% of the full price of the property. There are no interest charges for the first five years, but you own 100% of your home from the word go.
First, find out how much you can borrow for your mortgage from an independent financial advisor.
Then, choose your new Owl Home, funding 80% of the purchase with a combination of mortgage and deposit, while the remaining 20% is covered by an equity loan from the Government.
The loan is interest-free for five years; you simply need to pay a monthly management fee of £1 until the loan is repaid.
To use the Help to Buy Equity Loan scheme, you’ll need a 75% mortgage and at least a 5% deposit. However, you can put in a bigger deposit to reduce your mortgage if you want to. The minimum mortgage level acceptable for this scheme is 25% of the full purchase price.
Help to Buy: ISA
Saving for your first home? Give yourself a helping hand and get your deposit faster with the Help to Buy ISA. When you put your savings into one of these accounts, the Government will boost them by 25%, receiving £50 for every £200 you save!
Firstly, you need to choose your Help to Buy ISA from a range of banks, building societies and credit unions, then open the account with a deposit of up to £1,200, and then save up to £200 per month
You need to save at least £1,600 in your Help to Buy ISA before you can claim the minimum bonus of £400
The maximum government bonus you can receive is £3,000, for which you would need to have saved £12,000
When you’re ready to buy your first home, let your solicitor know so they can apply for your government bonus on your behalf. The bonus must be included with the funds consolidated at the completion of the property transaction