The Help to Buy scheme
With a Help to Buy equity loan the Government lends you up to 20% of the cost of your new build home, so you will need a minimum 5% deposit and a 55% mortgage to make up the rest.
For this scheme you must have a mortgage which will be a first charge as the equity loan can only be a second charge. The equity loan is for a maximum of 25 years or before if the property is sold or the mortgage is redeemed.
You will not be charged any fees on the 40% loan for the first five years of owning your home. From year six a fee of 1.75% is payable on the equity loan, which rises annually by RPI inflation plus 1%.
To find out more about Help to Buy, search for a property or apply please visit www.helptobuylondon.co.uk/.