How does help to buy work?
‘Help to Buy’ is an umbrella term for a range of different government-backed schemes to help people own their own homes:
95% mortgage scheme
This scheme is open to all homebuyers. It enables you to purchase a property worth up to £600,000 with just a 5% mortgage deposit.
Currently Barclays, HSBC, Lloyds, Natwest, Santander and Virgin Money have signed up to the scheme.
The government lends you up to 20% (40% in London) of the cost of a new-build property up to the value of £600,000. Interest is not charged on the loan for the first five years. A 5% cash deposit is required.
The loan is paid back when the property is sold or after 25 years ownership.
With this scheme first-time buyers are offered a discount of at least 30% on a new-build property.
Help to Buy ISA
The Help to Buy ISA scheme is now closed to new applicants.
However, if you already have a Help to Buy ISA you can continue to pay into it until November 2029, and you can claim your 25% bonus until November 2030.
Right to buy
If you live in a council property Right to Buy gives you the opportunity to buy your house at a discount.
Shared Ownership is a part-rent, part-buy scheme. This scheme is only available on leasehold properties which are mostly flats.