Help to Buy is a well known phrase, but not everyone is fully aware of how it works or what the scheme actually provides. This article looks at the Help to Buy scheme and provides a clear overview of how it helps with home ownership.
Help to Buy is a government scheme that helps aspiring homeowners acquire a house or flat with a deposit of only 5%. It offers equity loans that cover up to 20% of the sale price. At one time it also offered mortgage guarantees to lenders, but this program stopped at the end of 2016.
It is important to note that Help to Buy cannot be used if you-
- Are buying a second home or rental property
- Want to buy a property that exceeds the scheme’s price limits
These limits vary from one part of the UK to another. In England and Northern Ireland, Help to Buy may not be applied to homes valued at over £600,000. In Wales, the limit is £300,000. The maximum threshold in Scotland is £230,000.