Help to Buy buyers concerns and misconceptions addressed.
Moving home can be a daunting prospect for many of us, whether a first time or a third time buyer there are many obstacles to overcome while climbing the ever slippery property ladder. It is reassuring to know that the Help to Buy scheme is here to do just that – to help you buy your home – with 120,000 of you so far successfully using the scheme to secure your new home.
And yet, there are still some misconceptions about how the scheme works, with many assuming that they are not eligible for the scheme. This blogs hope to address some of these myths and make the scheme accessible for all.
“It’s too complicated!”
Getting your head around the scheme can be tricky at first, so let’s start by clearing up what exactly the scheme does….
The Help to Buy Equity Loan is exclusive to new build homes, and the government will lend you up to 20% of the property price with you paying a 5% deposit, and the remaining 75% of the cost taken out as a mortgage. In this case, nothing needs to be paid back on the government loan for five years but mortgage repayments start immediately.
“Help to Buy is only for first time buyers”
The Help to Buy Scheme is there for you no matter where you are on the property ladder.
You will be eligible for the equity loan as long as you are able to obtain a standard mortgage and provide the 5% deposit for a new build home up to the value of £600,000.
“I earn too much to be eligible”
The Help to Buy Scheme differs from previous government initiatives in that there is no cap on earnings, and so everyone is eligible to apply.
“Purchasing through the help to buy scheme will make it more difficult to sell my home in the future”
When you sell your property, if you haven’t done so already you must repay the equity loan and the amount you have to pay back will be based on the market value of your property at that time, so you will need to have a valuation carried out on the property. If you have already repaid your loan you sell your home in the usual way.
Still confused? Then why not look out for the Help to Buy Cheshire Magazine, which will be coming to you this autumn, for more useful tips and advice. Follow us on Twitter: @HelptoBuymag
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