The Government’s Help to Buy scheme aims to help buyers who have a deposit of at least 5% to buy a new home up to the value of £600,000.
The Government will lend you up to 20% of the value of your new home via an equity loan, so you will only need to secure a 75% mortgage. The equity loan is interest free for five years and you can pay it back at any time or on the sale of your home. This initiative is available to help all homebuyers, not just first time buyers, to own their own new build home in England.
Government changes to the Help to Buy scheme are scheduled to be introduced from April 2021. A Help to Buy loan will only be available to first time buyers and there will be a capped purchase price.