Help to Buy

The Government’s Help to Buy Scheme is designed to help home-owners and new buyers onto and up the property ladder with a new generation of affordable mortgages.
It’s a popular scheme from 2014 – and it’s easy to see why. With just a 5% deposit of the property’s purchase price, home buyers can now more easily stop renting – and join the ranks of happy home owners in the UK.

How does Help to Buy work?

The scheme is simple, but effective. It offers two options – one for those who want to keep their mortgage payments down, and one for those who can afford larger mortgage repayments every month.

Let’s take a look at which might suit you best:

Help to Buy option one – I want to keep my mortgage payments down

Help to BuyIf you’re keen to keep mortgage repayments down, this option can help. All you’ll need is a minimum of 5% deposit. The government will provide a loan of 20% of the purchase price, leaving you to secure a 75% mortgage. The loan provided by the government can be paid back at any time – or on the sale of your home.

This option expands on the First Buy scheme, which was previously targeted just at first time buyers. Now – it doesn’t matter if you’ve previously owned a home!


Help to Buy Option Two – I can afford bigger repayments, but only have a small deposit

Help to BuyIf you’ve only got access to a small deposit for your new home, but could afford to make larger repayments on your property, this could be for you!

As with the previous option, you’ll need a minimum 5% deposit to qualify. The government will then guarantee a proportion of your mortgage – encouraging mortgage providers to give you a far better deal. This is of course available to first-time buyers, as well as previous home-owners.

Help to Buy Eligibility

The scheme is designed to put property ownership within the grasp of many who would otherwise be unable, however admission to the scheme is dependent on a few factors. The property you’re hoping to purchase must be less than £600,000 in value, and you must not own any other property at the same time as purchasing your new home through the scheme. Although the above provisos are important – it’s important to note that there are more to take account of! Full lists of terms for participation in the scheme can be found at the official scheme website here:

Which banks are members of the scheme?

Many large mortgage providers have chosen to support Help to Buy – so there are plenty of banks to choose from when applying for your mortgage. These include:

  • Bank of Scotland
  • Aldermore
  • Barclays
  • Halifax
  • HSBC
  • Natwest
  • RBS
  • Santander
  • Virgin Money
  • Lloyds

Resources

A lot of excellent resources have been produced to help buyers to get to grasp with their options, and to understand what it can offer them. We’ve collected a few of the most useful resources here, so you can see whether it would be a good fit for you.

Official Help to Buy Website

This resource gives a clear overview of the Help to Buy scheme, and sets out the requirements for eligibility for Help to Buy, as well as NewBuy schemes.

Money Saving Expert – Mortgage Schemes

Money Saving Expert is a great resource for impartial advice about Help to Buy, setting out pros and cons about each option.

Which – Help to Buy Explained

For a no-nonsense, clear and direct overview of the programme, take a look at Which’s guide.

Help to Buy Calculator

You may have noticed that we have a Help to Buy Calculator on our site! Take a quick glance at the sidebar when browsing our property listings, and you can quickly calculate what deposit you’d need to own your new house under the Help to Buy Scheme.