What is the Help to Buy scheme?
It’s near impossible to get onto the property ladder today. Property prices are more often than not, on the rise, and so first time buyers coming into the market are going to have a very tough time getting on the ladder.
And so that’s why the government introduced the Help to Buy initiative.
What is it?
In short, it is a government initiative designed to help first time buyers. The aim is to enable individuals to get hold of financial help in purchasing their home, providing that they reside in England and cannot finance the purchase themselves (which is most first time buyers).
How does it work?
The government is giving out interest free credit over five years to help you on your way. That’s the Help to Buy scheme put simply.
The equity loans are available to anyone looking to buy and live in a new-build worth up to £600,000. Candidates must be in a position to finance at least 5% of the purchase price of the property, and then the Government will offer a loan of up to 20% of the price, while the remaining balance will be financed through a mortgage.
It is interest free for the first five years and after that, a fee of 1.75% of the value of your loan will start. The payable fee will increase every year by the change in the retail prices index plus 1%. You must repay the full 20% if the Help to Buy loan on the same day of your mortgage ending, or when you sell the property. Although you’re committed to repaying the percentage contribution you received at market value when selling, even if the value of your property falls dramatically, you won’t have to make up any shortfall in the equity.
For those looking to take those important first steps onto the ladder, the Help to Buy scheme is certainly an exciting prospect. Just make sure you take time to research it before you go ahead.
And when moving day does come around, don’t forget to give us a call!
What Our Clients Say
‘This is just to thank you and your team for the fantastic service during my move from Crouch End to Bexley. Everything was packed beautifully and the crew who moved me were fantastic, remaining friendly and good-humoured throughout. The piano was successfully moved from the first floor and everything arrived intact. It was really worth having the packing service as well, and my stress levels were kept well under control, so well done!’
19th May 2013
‘Excellent company – gave me a really good price and fantastic service. We had the full packing service on the Monday, then they finished packing, and moved us on the Tuesday – on time and on schedule. Kav even had five guys on the job, on the Tuesday morning, which kept us on schedule. No breakages, everything was well packed: highly recommended.
We’ll be moving again in the next year, this time with a piano – we hope to use Pers Removals again!’
24th June 2013
‘Three charming chaps arrived to move my piano from Maidenhead to West London. They took time to plan the moving process and communicated well with each other. They had several steps to cope with inside the house, and a few outside. I was expecting the piano to be bumped about – but not at all. Such care was taken – the piano could have been a newborn baby and would have come to no harm! Now that I have found Pers I will definitely use them again.’
8th January 2014