Help to Buy
Your dream Countryside home could be yours with just a 5% deposit thanks to the Government's Help to Buy scheme.
From April 2021, the Help to Buy scheme will only apply to first-time buyers purchasing a new-build home and will also include new maximum regional house price caps.
Reservations using Help to Buy will now come under the new version of the scheme. You can read more about the scheme on the government's website.
If you're searching for a new home in Wales, Help to Buy Wales is available to all buyers purchasing a new-build home under £300,000 up to the end of December 2021. You can go to the government's website for more information.
If you’re interested in buying one of our homes using the Help to Buy scheme, get in touch with one of our Sales Consultants.
How the scheme works from April 2021-2023
In England, a new version of the Help to Buy: Equity Loan scheme will be available from April 2021 until March 2023 and will only be available to first-time buyers.
For current reservations using Help to Buy, you'll be using the 2021-2023 version, as your completion date would be from April 2021.
As with the previous version of the scheme, its aim is to make mortgages more affordable to buyers. It allows buyers to purchase a new-build home with a deposit of as little as 5%, with the Government continuing to lend buyers up to 20% of the cost of a new build home (or 40% in London). This leaves just 75% (55% in London) of the cost of the property to mortgage and provides access to more affordable mortgage rates.
To make sure the scheme is being used by those who will benefit the most from Help to Buy, regional price caps have been brought in – see below.
Take advantage of the benefits that are available:
- Only a 5% deposit needed
- 20% interest free loan for the first 5 years (40% in Greater London)
- Ownership of 100% of your home
- Buying is more affordable with lower monthly mortgage payments during the interest free period
What are the new regional property price caps?
• North East - £186,100
• North West - £224,400
• Yorkshire and the Humber - £228,100
• East Midlands - £261,900
• West Midlands - £255,600
• East of England - £407,400
• London - £600,000
• South East - £437,600
• South West - £349,000
Help to Buy requirements
To qualify for a Help to Buy equity loan, you must:
- Sign a legal declaration to confirm that you are first-time buyers
- Not own a home or residential land now or in the past in the UK or abroad
- Take out a repayment mortgage that is valid for the duration of the equity loan
- Not have had any form of Sharia mortgage or Home Purchase Plan in the past.
- Be able to afford the monthly mortgage repayments
If you are applying to use the Help to Buy scheme and you are married or in a civil partnership, you will have to apply jointly with your spouse or civil partner. All parties buying the home must meet eligibility criteria.
Repaying the Help to Buy: Equity loan
The good news is that for the first 5 years, the equity loan is interest free with just a £1 monthly management fee to pay.
From year six, you’ll have to pay the £1 monthly management fee and a monthly interest fee of 1.75% of the equity loan. Interest fees will rise each year in April in line with the Consumer Price Index (CPI), plus 2%. You’ll continue to be pay interest until the loan has been repaid in full.
The loan must be repaid when you sell your property, pay off your repayment mortgage, or at the end of the loan.
If you still have the loan when you do come to sell, you will repay it at this stage and the amount you pay back will depend on how much your home is worth. So, if you initially purchased with a 5% deposit and 75% mortgage, you would need to repay 20% of the home’s value at the time you sell.
You can make repayments to reduce how much you owe at any time, but if you are making a part repayment it must be of at least 10% of what your home is worth. For example, you could repay 10% if you took out a 20% loan. Or you are in London and you took out a 40% loan, you could repay 10%, 20% or 30% at a time. The amount you need to pay back will be based on the current market value of your home.
For full details on the Help to Buy: Equity loan scheme 2021-2023, you can download the Government’s guide.
Our mortgage calculator on each property page can help you find out how much deposit you might need in order to borrow your desired amount, and what your mortgage amount could be.
*20%/40% loan is interest free for the first 5 years. 5% deposit is applicable with the Government’s Help to Buy scheme. Calculation above is indicative only. Available on selected plots only. Buyers will need to have sufficient funds to pay legal and sundry costs. Equity deposit percentage may be subject to lender’s and Government criteria. Prospective buyers should always seek independent financial advice before proceeding. Countryside can provide details of a number of independent financial advisers who are able to provide appropriate advice. Countryside terms and conditions apply. Subject to status.