How to apply
- Reserve a new build property with a homebuilder registered with the scheme.
- Apply online through the Help to Buy agent in your region.
- Your Help to Buy agent will assess your eligibility for the scheme and issue an Authority to Proceed.
Who qualifies for Help to Buy London?
London Help to Buy buyers must be able to fund 60% of the property through a conventional mortgage and deposit. Buyers must always provide a 5% cash deposit contribution (5% of the full purchase price). Buyers must take out a first charge mortgage with a qualifying lender. The maximum purchase price is £600,000.
Is Help to Buy still available in London?
When does the Help to Buy scheme end? Help to Buy: Equity Loan closes on 31 March 2023 and closed to new applications on 31 October 2022.
How does a property qualify for Help to Buy?
Eligibility for Help to Buy: Equity Loan (2021-2023)
You and anyone you’re buying a home with must: not own, or have ever owned, a home or residential land now, or in the past, in the UK or abroad and not have had any form of Sharia mortgage.
Is there a minimum salary for Help to Buy?
While there are no minimum or maximum income brackets, you must be able to fund at least 80% (60% in London) of the purchase through a combination of deposit and mortgage.
Is there a maximum income for Help to Buy?
The scheme is open to both first time buyers and existing home owners**. There is no maximum household income.
What is the downside of Help to Buy?
Cons of Help to Buy:
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%.
Can you get refused Help to Buy?
Help-to-Buy is a government scheme launched in 2013. It helps first-time home buyers buy their first property. Your help-to-buy application could have been declined for many different reasons, but generally, it’ll be because you didn’t meet the eligibility requirements for the help-to-buy scheme.
How much can I borrow with Help to Buy London?
40%
You can then borrow an equity loan to cover from 5% and up to 20% of the property purchase price of your newly built home. If the property is in London, you can borrow up to 40%.
Can you buy a house while on universal credit?
The upside is that Universal Credit should not prevent you from getting a mortgage, and lenders can’t legally decline your application on that basis alone. It’s also helpful to know that if you’re claiming Universal Credit and already have a mortgage, you may qualify for Support for Mortgage Interest (SMI).
How much can you put in a Help to Buy per month?
You can take out money whenever you want. Just remember that making withdrawals means it will take longer to build up your savings, as you can only pay in up to £200 per month. Also, the bonus amount you receive from the government is based on the closing balance by the time you claim.
Do they do a credit check for Help to Buy?
Applying for a Help to Buy mortgage involves a full credit check (as any mortgage does). Your lender will see all the times you’ve applied for credit and any problems you’ve had with repayment in the last six years.
How to buy a house in London with low income?
Shared Ownership – also known as ‘part buy, part rent’ – is aimed at first time buyers who cannot afford to buy a property on the open market. Under the scheme you can buy at least a 25% share in a home and pay a regulated rent to the freeholder on the remaining share.
Is Help to Buy 4.5 times salary?
What properties can I buy with Help to Buy London? New build properties within the 32 boroughs of London up to the value of £600,000 are eligible for the Help to Buy London scheme. When getting a mortgage you will be able to borrow up to a maximum of 4.5 times your salary.
How much will I pay after 5 years Help to Buy?
1.75%
After 5 years, there will be an interest fee of 1.75% of the amount of your loan at the time you took it out, which will rise each year after that by the increase in the Retail Price Index. Your Help to Buy agent can explain this in more detail.
How long does it take for Help to Buy approval?
This process normally takes 4 working days after which you’ll either be declined or you’ll get ‘Authority to Proceed’. Once you receive the Authority to Proceed you can apply for a mortgage – you can’t apply until you get the authority.
Is it hard to sell a Help to Buy house?
Selling a Help to Buy property is a little more complex than your typically home sale. That is because you will also need to pay back the equity loan used to buy the property in the first place. Help to Buy enables first-time buyers to purchase a new-build home of up to £600,000.
Is Help to Buy 2022 worth it?
The Help to Buy schemes have been hugely successful, encouraging first-time buyers to get a foot on the property ladder. However, the government has announced that its schemes will end on 31st October 2022. If you want to buy a home before this date, you can still use the equity loan and ISA schemes.
Do you pay back Help to Buy monthly?
Repaying the loan
You can pay off your equity loan in full, or make part payments, at any time before then. Any part payment you choose to make on top of a monthly interest payment must be at least 10% of the market value of your home at the time. Part payments will reduce the amount you owe on the equity loan.
Is Help to Buy London worth it?
If used wisely, Help to Buy is worth a look if you’re struggling to buy because high rents and the rising cost of living are making it hard to save a large enough deposit. It will mean you can get a cheaper mortgage over the next five years without having to pay extra monthly charges, bar the £1 monthly admin fee.
Can I borrow 6 times my salary UK?
While it’s uncommon, yes, it is possible. It’s more difficult to get a mortgage using a 6 times income multiple as providers view the loan as higher risk. Additionally, the Bank of England currently caps the amount of mortgages that can be extended above a 4.5 multiplier.