Jargon Busting: Help to Buy in 30 seconds or less
‘What is Help to Buy? Is it the same as Shared Ownership? Can I buy a home through the scheme if I’m not a first time buyer?’
As part of our Jargon Busting in 30 seconds or less mini-series, we’ve taken a look at the Help to Buy equity loan and what the scheme involves.
Help to Buy is a government backed scheme which aims to help first time buyers get a foot onto 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% of the home, so the purchaser only needs to raise a 5% deposit, with a 75% mortgage making up the rest. As the equity 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.
For more information on Help to Buy, check out our other articles below:
Share to Buy is a one stop shop for affordable homes. On our website, you can search for properties, compare mortgages, and find out all you need to know about alternative home buying schemes using our FAQs and guides.