For many purchasers, first time buyers or existing homeowners, affordability can be a barrier to getting onto the housing ladder or even moving up it. Understanding how Help to Buy could be right for you can also be a daunting process, so we've put together some of the frequently asked questions on what Help to Buy is and how it works.
Q: What is Help to Buy?
A: It is an initiative where buyers may qualify for equity loan assistance from the Government. Depending on whether you are purchasing a home from England or Scotland the amount will vary. In England, the Government can lend you up to 20% whereas the Scottish Government can lend you up to 15%. Please see specific Help to Buy pages for England and Scotland for more information.
Q: Can I use Help to Buy on any home?
A: No, Help to Buy only applies for new build homes up to the maximum purchase price of £600,000 in England and up to £200,000 in Scotland. In April 2021, the maximum purchase price Help to Buy England will come down in most areas.
If you are first time buyer in Scotland, you may also wish to consider the First Home Fund, which has no maximum purchase price.
Q: Will I require a deposit?
A: Yes, you will be required to fund a minimum deposit of at least 5%, based on the full purchase price. A maximum of up to 60% deposit can be used.
Q: Do I still need a mortgage?
A: Yes, depending on how much deposit you place and the amount of loan you can receive from the Government you will still need to fund the remaining balance of up to 75% of the purchase price in England and up to 85% in Scotland.
Q: Is Help to Buy a shared ownership scheme?
A: No. With the Help to Buy Equity Loan, you purchase 100% of your home and legally own 100% of your home.
Q: Is the scheme just for first time buyers?
A: No, both first time buyers and existing homeowners who are moving to a new home may take advantage of this scheme. In April 2021, the rules will change for Help to Buy England, and it will only be available to first time buyers.
Q: Can I use Help to Buy for a buy-to-let property?
A: The scheme is only available on properties that will be occupied by the person or persons who have taken out the mortgage (owner occupier) and it must be your only residence.
Q: Can I buy a home off plan?
A: Yes, you are able to reserve a new home off-plan.
Q: Who pays for repairs and ongoing maintenance to my home?
A: It is your responsibility to repair and maintain your home. CALA homes come with a 2 year CALA guarantee and an NHBC warranty that will cover certain defects for up to 10 years after it was built. Please ask a CALA representative for more information.
Q: Will I require other funds?
A: Yes, you will be required to fund a reservation fee and other relevant costs associated with purchasing a home such as Stamp Duty Land Tax/Land and Buildings Transaction Tax and legal fees.
Help to Buy in England
Help to Buy England is available on properties up to £600,000.
TRY OUR ENGLAND HELP TO BUY CALCULATOR
Help to Buy (Scotland)
Help to Buy (Scotland) is available on properties up to £200,000.
TRY OUR SCOTLAND HELP TO BUY CALCULATOR