Menu
Help To Buy
HELP TO BUY
Help to Buy is a government-backed scheme that lets you own a home by putting down a deposit of only 5% of the total property value. Subject to approval the Government will give you a 20% loan interest-free for 5 years. For the remaining 75%, you will have to look for a mortgage. There are a number of good mortgage deals available in the market, you could either search them yourself or ask Leodis Financial to find the best solution for your situation.
More information and the eligible criteria can be found over on the Government website – https://www.helptobuy.gov.uk
HELP KEEP MORE POUNDS IN YOUR POCKET – TALK TO US ABOUT YOUR REQUIREMENTS TODAY.
ISA Account
For those saving money to purchase their first home, they should save the money into a Help to Buy ISA account to receive an extra 25% bonus from the government. So for every £1000 you save, the Government will contribute an extra £250 taking your total savings to £1250. The maximum bonus you can receive from the Government is £3000 per buyer. To receive the maximum assistance from the Government, you need to have saved up to £12,000 in your account.
Since the bonus is per buyer as opposed to per household, couples looking to purchase a home together could receive up to £6000 toward their home purchase. For couples to receive the maximum bonus from the Government, they must have a combined total of £24,000 in their Help to Buy ISA accounts.
When buying your home, your solicitor would have to apply for the Government bonus on your behalf to receive Government assistance. Once the Government grants you the sum, it will be added toward your deposit.
– Please be advised that this money cannot be used to cover the estate agent’s fees, contract cost, etc.
– Please be advised that this money cannot be used to cover the estate agent’s fees, contract cost, etc.
Shared Ownership
For those who cannot afford the mortgage on 100% of the property, Help to Buy shared ownership scheme can help them own 25% to 75% of their home and pay rent on the rest. Then when circumstances change and they are able to afford to purchase the remainder of their home, they will have the option to do so.
There are salary conditions for those looking to benefit from this scheme:
- For non-Londoners, the annual household income must not exceed £80,000
- For London residents, the annual household income must be under £90,000
Other conditions that might qualify for the Help to Buy: Shared Ownership scheme are:
- You are a first time buyer
- You used to be a home owner but can no longer afford one now
- You are already a shared owner and want to move
London Help to Buy
To compensate for the high property prices in London boroughs, the Government increased the upper loan limit on Help to Buy: Equity Loan Scheme from 20% to 40%. It means that buyers in London boroughs could receive Government equity loans of up to 40% of the property value.
You can own your home by putting down as little as 5% deposit on the property and get a Government equity loan of up to 40% and for the remainder take out a mortgage.
So let’s say you wanted to buy a £500,000 property in London. You would need to put down a deposit of 5% (£25,000) and receive a Government equity loan of 40% (£200,000). For the remainder of the cost, you would have to take out a mortgage. You can either search for mortgage deals yourself or have Leodis Financial find one that suits your circumstances perfectly.
Who is Eligible?
Like any other Government scheme, there are eligibility requirements in place so that the Help to Buy scheme helps those that need it the most.
- You are a first-time buyer or want to move
- The property must be newly built
- The property value must not exceed £600,000
- You will not let out your new home
- You mustn’t own another property at the time of purchase
What we do
Our Services
Have a question?
Get in touch