At the beginning of the month a new weapon was installed in the armoury of those trying to buy a new home: The Help to Buy scheme was announced by the Chancellor in the March budget and came into force on April 1st.
It may have been introduced on April the first, but this is no April Fool’s joke. This is a serious scheme set up by the Government to help more people across the UK to own their own homes.
Help to Buy* is a Government backed equity scheme that enables buyers to purchase a new home with just 5% deposit and a 20% Government equity loan – a loan that can be repaid at any time within the first 25 years.
An equity loan is effectively a second mortgage in the form of a lump sum.
So, you provide the 5% deposit, your mortgage company lends you 75% of the value of the house, leaving 20%, which is the portion that the Government will lend to you - interest free - for five years.
The Help to Buy scheme is available at all Linden Homes’ developments and applies to any of their homes that are valued at £600,000 or less.
At St Bartholomew’s Grange in Newbury, there are just a few remaining new homes left. Using the new Help to Buy scheme, it would be possible to buy one of the beautiful and extremely stylish three bedroom apartments in the Womestall building with a 5% deposit and, taking advantage of the new scheme, take out a 20% equity loan from the Government (interest free for five years).
Mark Docherty, Linden Homes Southern’s sales and marketing director says that, with the new Help to Buy scheme will make buying a new home a far less daunting prospect financially:
“The Help to Buy scheme is really going to open up the possibilities for people in the market for a new home. At St Barts for example, the scheme would work really well. One of our three bedroom apartments in Wormestall would require a deposit of just under £19,000. The equity loan from the Government would total £75,000 – and that is interest free for five years. Help to Buy will open doors for many people either hoping to join, or move up the property ladder.”
Alternatively, please call the sales and marketing suite on 01635 521607. The suite is open daily from 10am to 5pm (4pm on Fridays).
*conditions apply
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For further information, contact Claire McCowan or Tracy Mannion at Remarkable Public Relations on 01962 893 893 or Claire.mccowan@remarkablegroup.co.uk
