Terms and Conditions
1.1 This offer is only available on selected new build plots and developments in Scotland only. The maximum property value for Help to Buy (Scotland) is £230,000.
1.2 Help to Buy (Scotland) is only available on capital and interest (or repayment) mortgages and on properties which are occupied by the individual or individuals taking out the mortgage.
1.3 Purchasers will be required to raise funding (including a mortgage and a deposit) of not less than 85% of the property purchase price (excluding any mortgage fees). The property will be subject to a standard security in favour of the mortgage company. Purchaser deposit must be a minimum of 5% after the equity loan has been applied. Mortgage lender's criteria may affect any deposit percentage and whether it applies before or after the equity loan is deducted from the purchase price.
1.4 The Scottish Ministers will provide an equity loan to eligible purchasers of more than 15% of the purchase price subject to the terms of the equity loan agreement. Based on the maximum purchase price of £230,000, the Scottish Ministers will therefore provide an equity loan of up to £34,500.
1.5 The equity loan provided by the Scottish Ministers will be secured by a standard security on the property behind the standard security referred to in paragraph 1.3. A Ranking Agreement will be entered into between the purchaser’s lender and the Scottish Ministers.
1.6 No interest is payable on the loan provided by the Scottish Ministers.
1.7 The equity loans will be repayable on the basis of the greater of the price of the property or its market value at the time of future sale or mortgage repayment as opposed to the original purchase price but disregarding additions or improvements made to the property by the purchaser with the consent of the Scottish Ministers. This means that if the property increases or decreases in value, the purchaser will pay the Scottish Ministers the same percentage of the new price of the property as the percentage the equity loan was of the original price. This may result in the Scottish Ministers being paid more or less than the original loan value.
1.8 If, on the sale of the property, the price of the property has fallen and there is insufficient money from the sale to repay the equity loans after the mortgage has been paid the purchaser will lose any deposit paid. The Scottish Ministers will not however seek to recover the balance of their equity, not otherwise paid out of the proceeds of sale, from the purchaser.
1.9 The purchaser may repay the equity loan to the Scottish Ministers at any time following legal Settlement. Repayment whether in full or by instalments will be based on the market value of the property at the time of the repayment(s) and the purchaser will have to arrange and pay for the valuation of the property at that time. The minimum instalment value is 10% of the total of the equity loans.
1.10 Detailed terms and conditions apply to the equity loan which will be made available to the purchaser via their legal advisors as part of the conveyancing process.
An example of how Help to Buy (Scotland) works is as follows:
||(5% of purchase price)
||(15% provided by the Scottish Ministers)
Sale after 5 years
|Open market value
||(a 25% uplift in value)
||(assuming no repayment of capital)
||(15% of the open market value)
|Remainder available to purchaser
Barratt Homes General Terms & Conditions
Any promoted Barratt offer is subject to contract and status. Offers are on selected plots only and are subject to availability. The offers advertised cannot be used in conjunction with any other offer on the same plot unless expressly stated otherwise. Prices and details are correct at time of going to press. All images are typical of Barratt homes and are for illustrative purposes only. Please contact the development in which you are interested for further details.
Barratt reserve the right to withdraw or alter any of these offers at any time prior to the payment of a reservation fee. Contracts must be exchanged within 28 days of reservation of your property. Failure to do so may result in the loss of all or part of your reservation fee.
The current specific offers being advertised in relation to selected Barratt developments are also subject to the specific terms and conditions set out above (N.B. these offers may vary from time to time and you should refer to the development in which you are interested to discover which offers are available on specific plots and developments).
Barratt will not be liable for the refusal of a mortgage based on the borrower’s individual circumstances which leads to the loss of any reservation fee. Barratt will not be responsible for the failure of any deal due to any defects in your existing property which arise as a result of an inspection or survey, whether a part exchange deal has been agreed or not.
These terms and conditions do not affect your statutory rights.
Barratt Homes is trading names of BDW Trading Limited (Registered Number 03018173) which is a subsidiary of Barratt Developments PLC (Registered Number 00604574) both with registered offices at Barratt House, Cartwright Way, Forest Business Park, Bardon Hill, Coalville, Leicestershire, LE67 1UF.
If you require a mortgage, you are strongly advised to obtain advice from a regulated adviser. Barratt Homes recommends from a panel of new build mortgage advisers who have extensive knowledge of the new build mortgage market, though you may, of course, seek such advice from your own mortgage adviser.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE