The Government's Help to Buy scheme is available in England, Scotland and Wales.
There are currently two Help to Buy schemes – 'Equity Loan' and 'Mortgage Guarantee'. Both require a 5% deposit and are available to first time buyers and existing homeowners. Did you know the recent changes to Stamp Duty could actually make it much easier and affordable to buy? So now could be a great time to get moving.
The two Help to Buy schemes are very different and here’s how:
Help to Buy Equity Loan
- Available on new build homes up to £600,000 in England, £250,000 in Scotland and £300,000 in Wales.
- The Government will lend you up to 20% of the property value through an equity loan which can be repaid at any time during the loan term or on the sale of your home.
- In England and Wales, you won’t be charged any loan fees for the first 5 years of owning your home. In Scotland, there are no loan fees to be paid.
- You’ll only need to secure up to a 75% mortgage from a bank or building society.
- There is a range of competitive mortgage rates available with this scheme.
Mortgage Calculator for Help to Buy Equity Loan
Work out your options with our handy calculator, including how much deposit you need and how much your monthly repayments might be.
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Find out about Help to Buy Armed Forces now.
Help to Buy Mortgage Guarantee
- Available on new build homes and existing homes up to £600,000 in England, Scotland and Wales.
- You’ll need to secure up to a 95% mortgage from a participating mortgage lender.
- The lender can now offer this loan-to-value mortgage as the Government will provide them with a guarantee of up to 15% of the property value.
Buying new with Barratt makes sense
If you’re after more space to entertain or room for your kids to play, you’ll be delighted with the open-plan, multi-purpose spaces that are included in Barratt homes. We make it easy for you with our thoughtful approach to design and use energy efficient materials and building techniques which could help lower your bills and running costs. Virtually all our homes are covered by our 5 Year Warranty† in addition to the standard 10-year NHBC warranty. You can be confident that you're choosing a quality home as we've been ^awarded 5-stars for customer satisfaction from the Home Builders Federation 5 years in a row.
Frequently Asked Questions
Q) What is Help to Buy?
A) Help to Buy is a Government-backed scheme which helps first time buyers and existing home owners purchase a home with as little as 5% deposit. There are two ways to purchase a property with Help to Buy – either with an 'Equity Loan' or 'Mortgage Guarantee'.
Q) Is Help to Buy just for first-time buyers?
A) Help to Buy is available for both first-time buyers and existing homeowners.
Q) What are the key differences between Equity Loan and Mortgage Guarantee?
|Type of home
||New-build homes only
||New and old homes
|Government Equity Loan
||Up to 20%
|Maximum purchase price
£600,000 in England
£250,000 in Scotland
£300,000 in Wales
Q) How does the 20% Equity Loan work?
A) Help to Buy Equity Loan provides buyers with an equity loan of up to 20% of the property value which can be repaid at any time within the first 25 years (or the terms of mortgage), or alternatively on the sale of the property.
In England and Wales, you won’t be charged any loan fees for the first 5 years of owning your home. In the 6th year, you’ll be charged a fee of 1.75% of the loan’s value. After this, the fee will increase every year. The increase is worked out by using the Retail Prices Index plus 1%. Note that fees don’t count towards paying back the equity loan.
With Help to Buy Equity Loan, buyers only need up to a 75% mortgage; but with Help to Buy Mortgage Guarantee, buyers will need up to a 95% mortgage.
Q) Why has Help to Buy been set up?
A) The Government is continuing its pledge to help more people across the UK to become home owners.
Q) Am I able to buy a house under the new scheme?
A) If you can raise a 5% deposit you will be able to buy a new home under Help to Buy.
Q) When did the scheme start?
A) Help to Buy Equity Loan came into operation on 1 April 2013 in England, 30th September 2013 in Scotland and 25th November 2013 in Wales. Help to Buy Mortgage Guarantee is available from 8 October 2013 in the UK.
Q) What is the maximum property purchase price?
The maximum home purchase price with Help to Buy Equity Loan is £600,000 in England, £250,000 in Scotland and £300,000 in Wales. The maximum home purchase price with Help to Buy Mortgage Guarantee is £600,000 in England, Scotland and Wales.
Q) Can I use Help to Buy for a buy-to-let property?
A) No, the scheme is only available on properties that will be occupied by the person or persons who have taken out the mortgage.
Q) Am I able to get an interest only mortgage using Help to Buy?
A) No, the scheme is only available in relation to capital repayment mortgages.
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Read the full terms and conditions for England
Read the full terms and conditions for Scotland
Read the full terms and conditions for Wales
*"Exclusive" refers to the Barratt Developments Plc Group brands.
†Our 5 year warranty is available on virtually all of our developments and properties. Terms and conditions apply, click here for details of what is included and excluded under this warranty.