Balconies come in all shapes and sizes – from the smallest Juliet to the most spacious deck. Yet, while we all treasure our own bit of private outdoor space, our balconies are often left unloved and underappreciated. Regardless of size, this space is unbelievably versatile and can be transformed into the most beautiful of havens…
Help to Buy: Pros and Cons
While the Help to Buy equity loan offers a fantastic opportunity for buyers to take those vital steps towards home ownership, it’s also important to weigh up your options. Check out our Help to Buy pros and cons to see if the scheme is right for you!
Help to Buy is a government backed scheme which aims to help first time buyers get on to the property ladder. The Help to Buy equity loan enables purchasers to buy a new build home with the help of an equity loan, also known as shared equity.
The government provides a loan of up to 20% (40% within Greater London) of the home, so the purchaser only needs to raise a 5% deposit, with a 75% mortgage (55% within Greater London) making up the rest.
- Legally, you own 100% of the property.
- The buyer will only need to raise a 5% deposit of the full purchase price.
- As the loan counts towards your deposit, you may be able to take out a mortgage where you might otherwise struggle. This also means that you don’t have to take out a costly 95% mortgage.
- You do not pay any interest on your loan during the first five years.
- There is no maximum household income cap on this scheme.
- You have 25 years before you need to pay back the loan in full.
- The Help to Buy equity loan is only available for new build properties, not resale homes.
- You cannot buy a home that is on the market for more than £600,000.
- Only suitable if you can afford the mortgage repayments for the value of the entire property.
- After the initial five year period, you will be charged an annual fee of 1.75% on the amount of the outstanding loan. This fee will increase each year with inflation.
- Your loan will become more expensive over time and must be repaid in chunks of at least 10%. The amount you repay is also not fixed and will fluctuate with the value of your home.
Share to Buy is a one stop shop for first time buyers looking to get a foot on the property ladder. Start planning your future today and check out our available properties.
Barking Riverside will offer residents plenty of opportunities to get on their bikes, with dedicated cycle paths set to run throughout the 443 acre development – and Barking station just a 15 minute ride away. The first phase of L&Q homes at Barking Riverside, Parklands, consists of one, two and three bedroom apartments, all available…