A little guide created for
HELP TO BUY
Make your money go further with Help to Buy
WHY USE
HELP TO BUY? An explanation...
Heard about Help to Buy? It’s not as confusing as it first may seem. The Government has created a scheme which could make your dream of owning a beautiful new home become a reality. In this booklet, Create Homes explains about both of the Government backed schemes - the ‘Equity Loan’ and the ‘Help to Buy: ISA’. Find out more online! createhomes.com helptobuy.gov.uk
The Government can help you achieve your dream home Buyer’s
5%
Government’s
deposit
20% loan
£10k
£40k
£150k 75% mortgage from a commercial lender
Example house value
£200K
WHY USE
HELP TO BUY? Equity Loan
GET ON THE PROPERTY LADDER SOONER & CHEAPER WITH A GOVERNMENT EQUITY LOAN! This amazing scheme aims to all purchasers (not just first time buyers), who have a deposit of 5% or over, buy a new home up to the value of £600,00 by using a Government Equity Loan. HOW IT WORKS The Government provides buyers with a loan of between 5-20% of the property’s value, which bridges the gap between your deposit and a mortgage of up to 75% of the purchase price. A Government Equity Loan is a cheaper way of borrowing the difference, because it’s interest free for the first 5 years – and from the 6th year, a low fee of only 1.75% is payable (this rises by RPI* inflation, plus 1%). * Retail Prices Index
Save for your dream house faster with a Government bonus Open an account
Deposit up to £1,200
Choose a Help to Buy: ISA from a range of banks and building societies.
You need to have saved at least £1,600 in your Help to Buy: ISA before you can claim the minimum Government bonus of £400.
Save up to £200 a month
Receive a Government bonus...
...up to
£3,000
When you buy your first home, your solicitor will apply for your Government bonus once you tell your bank or building society that you are closing your Help to Buy: ISA.
WHY USE
HELP TO BUY? ISA
GET FREE MONEY TO HELP BOOST YOUR DEPOSIT FUNDS WHEN SAVING TO BUY YOUR FIRST HOME The Help To Buy: ISA is a good savings option for you if you want to purchase a property of up to £250,000 and are aged 16 or over. HOW IT WORKS: Once set up, the Government will boost your savings by a further 25%. For example, for every £200 a month you save in your ISA, they will contribute a free bonus of £50, helping your savings grow faster so you can buy your dream home sooner! The maximum total bonus you could receive is £3,000. TOP TIPS:
Deposit a lump sum up to £1,200 initially, then save £200 each month. You must save at least £1,600 to be entitled to a Government bonus.
Creating the reality of owning your own home
HELP TO BUY Got a question?
Are there any restrictions on the properties that I can purchase? All Help to Buy: Equity Loan homes are on new build developments where the Homes and Communities Agency has a registration agreement with the house builder. You can only purchase from these house builders. The maximum purchase price is ÂŁ600,000. After five years of ownership, how is the interest collected? Interest can be paid in a single yearly payment or in monthly instalments. You will also receive a statement each year confirming when your fees are payable. The annual statement will also show any payments you have made once you start paying the interest.
HELP TO BUY Got a question?
Who pays for repairs & ongoing maintenance? You will own 100% of the property. Therefore, it is your responsibility to repair and maintain your home. New homes often come with a guarantee that will cover certain defects for up to 10 years after it was built. This guarantee usually only covers defects in the house builder’s workmanship.
It’s more than just a place to live....
WEBSITE
createhomes.com
sales@createhomes.com
PHONE
07900 221896