Here David Thomas, regional sales and marketing director at our Eastern region explains all you need to know about the Help to Buy scheme and how it can help you to purchase one of the stunning homes at Steeple View.
What is it?
Help to Buy is an Equity Loan Scheme to help first time buyers. Homes England will lend up to 20% of the value of your first home, and you must fund the rest of the cost with a deposit of at least 5% and a mortgage. Because the Help to Buy equity loan is interest free for the first five years, the mortgage repayments will be lower – thus potentially reducing your on monthly outgoings.
One important difference between an equity loan and a mortgage is that the amount you pay back is linked to the value of your home. So, you may pay back more or less than you borrowed through Help to Buy.
Can I use it?
The current Help to Buy Equity Loan scheme is available only to first time buyers of new-build homes. The previous scheme was available to existing homeowners too, so you may know someone who used the scheme to buy their second or third home – but that is no longer allowed. You also cannot use the scheme if you’re buying a home with someone who has owned a home in the past.
The Help to Buy scheme is available exclusively to new-build properties and is subject to regional price caps. For the South East – the location of our Steeple View development - the maximum value for your home is £437,600.
How do I repay it?
The Help to Buy Equity Loan is interest-free for the first five years. In year six of your loan, you will start to pay interest at 1.75% of the loan. This interest will rise each new tax year by the Consumer Price Index, plus 2%.
You can repay the equity loan in blocks of 10% of the value of your home or pay off the full amount at any time or when you sell your home.
How do I apply?
The first step is to find your first home. If you chose a Tilia home, we can put you in touch with an Independent Financial Advisor, who will help you work out what you can afford and fill out your application with you. You will then need to submit the application to a Help to Buy agent. You can find a list at helptobuy.gov.uk.
How can I use Help to Buy at Steeple View?
At Steeple View we have a selection of two- and four-bedroom homes currently available to purchase with Help to Buy, perfect for first time buyers whether couples or growing families.
Our two-bedroom ‘Thornton’ features an impressive sitting room with French doors to the garden, alongside an open plan kitchen/dining room, WC and understairs storage. Upstairs, both the master bedroom and second bedroom boast an en suite with storage.
The four-bedroom ‘Westwood’ is a beautiful three storey home, featuring a living room and kitchen/dining area on the ground floor, alongside a WC. Three of the bedrooms are positioned on the first floor, one of which would be perfect as a study, with the main family bathroom. Meanwhile the impressive master bedroom dominates the second floor, with an en suite shower room for convenience.
Priced from £299,950, there are currently six homes that are available to purchase with Help to Buy at Steeple View, meaning purchasers could be in before Christmas. What’s more, plot 84 The Thornton is available with an upgraded kitchen and appliances*.