Buyers must provide a deposit of a minimum of 5% of the full purchase price.
On Help to Buy South West the Government will lend you up to 20% of the value of a property in the form of an equity loan. The loan itself is repayable after 25 years, or on the sale of the property if earlier.
You then need to secure up to a 75% mortgage from a bank or building society.
Equity loans are available to first time buyers as well as homeowners looking to move.
The maximum you can borrow from Help to Buy in England is £120,000 (and up to £240,000 for London). There is no minimum amount.
For the first five years of Help to Buy home ownership you will pay an initial monthly management fee of £1. This continues until the loan is repaid. After five years you will be required to pay an interest fee of 1.75% of the amount of your Help to Buy shared equity loan at the time you purchased your property, rising each year after that by the increase (if any) in the Retail Prices Index (RPI) plus 1%.
*Terms and conditions apply. Minimum 5% deposit subject to lenders requirements and eligibility. Prices correct at time of going to production. New home buyers wishing to take advantage of the ‘Help to Buy’ scheme will need to qualify with a mortgage lender in the usual way and be subject to the lender’s normal assessment criteria. ‘Help to Buy’ equity loan is subject to status. ‘Help to Buy’ conditions apply and applications are subject to scheme approval. Your home is at risk if you do not keep up mortgage repayments or any other debts secured on your home.