If you’re wondering if one of our amazing new build properties is just out of reach then think again; there are ways and means to help you afford your next property move and Help to Buy is one of them. Under this scheme, the government lends you up to 20% of the cost of your newly built home and then shares in any increase (or decrease) of the property’s value. The property must be your only property and your permanent residence but even those who have used Help to Buy previously, can still use it again and it’s also open to second time buyers.

You will need to put in a cash deposit of at least 5% and then a mortgage of up to 75% to make up the rest. You won’t be charged loan fees on the 20% loan for the first five years of owning your home and the maximum purchase price the scheme will cover is £600,000.

When you sell your property, the amount you will need to repay will include a share of any capital appreciation that has occurred. If you take the example of purchasing a property valued at £200,000 and take the equity loan for 20% of the value (i.e £40,000), when you sell the property say for £225,000, you will need to repay 20% of the selling price back to the government in repayment of the loan. For the purposes of this example, this would equate to £45,000.

However, if property prices fall, and the market value of the property is now £175,000, then you would still have to pay the 20% back but this would be reduced to £35,000.

After the first 5 years, you will an additional fee as interest of 1.75% rising annually by the increase (if any) in the retail price index (RPI) plus 1%.

If you’d like to find out more about Help to Buy or wish to look into a standard mortgage product, our mortgage advisor Clive from Concept Financial services is on hand happy to help. One of the best things about Clive apart from his knowledge and determination to find a product that works for you as an individual, is there’s no charge to use his services so there’s really nothing to lose by calling him today! Clive and our team at Brampton Valley Homes are committed to working hard for you so you can live in the dream home you deserve.

Contact Concept Financial Services- 07707 140991