Help to buy – is it for me?

Most of us have seen the advertisements for the government’s Help-to-Buy scheme, but (particularly if you're already a home owner) you have probably not considered it because you thought the circumstances didn't apply to you. Unfortunately, because of this, many people are missing out on an amazing opportunity. It's a myth that this generous incentive only applies to first time buyers! It does of course, but it also applies to homeowners looking to step up the property ladder. There are of course some criteria the property must meet – Help-to-Buy is available on new build homes with a maximum purchase price is £600,000 depending on area.

It's such a simple method too – for most people, the biggest problem of buying a house isn't the monthly payments but the enormous deposits lenders now require. On a £250,000 house the deposit needed would typically be £50,000 (20%), not a sum we all have easily to hand. But with Help-to-Buy you only need 5% of the purchase price (on the same property this would be just £12,500) which is much more manageable. Through a Help-to-Buy Equity Loan, the government will then lend a further 20% of the purchase price (interest free for the first five years) meaning you only need a 75% mortgage to make up the rest! The smaller loan-to-value mortgage will also mean a better rate and lower monthly mortgage repayments.

This scheme is opening doors for first time buyers eager to get onto the ladder and it's also ideal for growing families who own their home already but perhaps don't have the equity in it to get the bigger house they need. When you look at the figures it really is a fantastic opportunity that makes financial sense. With Help-to-Buy owning your dream home could be closer than you think.

To find out more about the Help-to-Buy scheme, give your local Sowerbys office a call or watch the video below for further information.

"Thank you so much for your help in the marketing and selling of both our properties. We choose Sowerby’s due to their staff. They seem to be a different brand of estate agent, helpful and courteous and very understanding. We have experienced both sides of the housing market with one sale that could not have been smoother and completed within six weeks and another that fell through twice, (third time lucky!) and that seemed fraught with difficulties right until the last moment! This is when the agents earn their fee. I am afraid at times I required a great deal of hand holding and found the whole process overwhelming at times, but with all your help we got there!! A huge thank you to all the team, we are now living in our dream home!"
Becky Lockhart – November 2014