If you are buying a new build property the government will lend you up to 20%* of the purchase value of the property. There are no fees paid on the 20% for the first 5 years of the equity loan and you only need a 5% deposit with a 75% loan to value mortgage.
*Please note that if you live in London the equity loan is higher at 40% of the property value.
Key points on Equity Loans
- Equity loans are available for new build properties only;
- They are available for first time and non-first time buyers;
- When a property is sold, the relevant share of the loan is paid back to the government; and
- Hunt & Coombs will treat the loan similarly to how we treat a mortgage and will repay the loan with your proceeds of sale.
On completion of your new build, you cannot own any other property or you will not qualify. As this scheme is only available to residential properties, you cannot sublet or enter into any part exchange deals on your old home.
Developers are keen to utilise this scheme and typically have sales executives that are familiar with the process, as well as contacts with local Help to Buy agents. Please note that whilst this scheme runs in England there are similar schemes operating in Wales, Northern Ireland and Scotland.
Request a quote
For further help and advice on the above or to request a quote please contact your local Conveyancing Team on:
- Peterborough 01733 882800
- Huntingdon 01480 411224
- Oundle 01832 273506
- St Neots 01480 702207
Or email the Residential Conveyancing Team directly at: firstname.lastname@example.org.