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.
Scholar’s Court, Linden Homes’ development in Brentwood at Burntwood Square, offers a good example of how the scheme could work.
It is situated in the Highwood Hospital Conservation area and was originally built at the end of the 19th century. It was designed as a children’s cottage hospital and was planned around a series of open courtyards. These listed buildings, with their soft, red brickwork and original windows have been carefully restored by Linden Homes and remodelled to produce a series of new 1 & 2 bedroom homes arranged over three blocks – School House, College House and Waltham Coach House. The buildings are set in the peaceful grounds, and flanked by mature trees and wide lawns. There are a further two new stunning detached homes available valued at £599,950 and therefore also apply to the Help to Buy scheme.
Gareth Jacob, Linden Homes’ sales and marketing director says Help to Buy should make the financial implications of buying a new home less daunting:
“Let’s take Scholar’s Court at Burntwood Square in Brentwood as an example:
A one bedroom terraced home in College House priced at £225,000 would mean that, under the Help to Buy scheme, you would need a 5% deposit of just £11,250.
Your mortgage of £168,750 would then be topped up by the Government’s equity loan (a further £45,000, representing 20% of the total). So all you need to worry about is the £11,250 up front to buy a new, one bedroom home in a really nice development in Brentwood.”
For more details of all the Scholar’s Court homes at Burntwood Square, please call 01277 201812.
For further information, contact Claire McCowan or Tracy Mannion at Remarkable Public Relations on 01962 893 893 or Claire.firstname.lastname@example.org
16 May 2013
All images are used for illustrative purposes only and are representative only. They may not be the same as the actual home you purchase and the specification may differ. Images may be of a slightly different model of home and may include optional upgrades and extras which involve additional cost. Individual features such as windows, brick, carpets, paint and other material colours may vary and also the specification of fittings may vary. Any furnishings and furniture are not included in any sale. Please check with our sales representatives for details of the exact specifications available at the development(s) for each type of home and the associated prices.