Help to Buy
The Government-backed Help to Buy:Equity Loan can be used when you buy a Market Sale property from us and it has the benefit of allowing you to purchase your new home with just a 5% deposit**.
Your place to call home with Help to Buy.
The Help to Buy:Equity Loan is a Government-backed equity loan designed to help you buy your new home. With the help of up to 20% equity loan from the government you can buy your home with just a 5% deposit. Help to Buy:Equity Loan is available subject to eligibility, terms and conditions.
This scheme is only available to first time buyers.
How does Help to Buy work?
- You need a minimum 5% deposit to apply
- The government will lend you up to 20% of the value of your property through an equity loan (or up to 40% in London)
- You will need to secure up to a 75% repayment mortgage from a bank or a building society
- You must repay the equity loan when you pay off your repayment mortgage, sell your home or reach the end of your equity loan term (normally 25 years) - whichever is the sooner.
- The scheme is only available on new build homes and it is exclusively for first time buyers
- The maximum home purchase price varies by region
- There is no upper limit on your household income
- It is not Shared Ownership - you will own 100% of your home
- Available on selected Orbit Homes developments*
Example house price
The following is an example of how Help to Buy would work when purchasing a property for £200,000.
Help to Buy is available to first time buyers purchasing a new build home.
The maximum property purchase price varies by region as follows:
- East of England - £407,400
- South - £437,600
- West Midlands - £255,600
- East Midlands - £261,900
You will need a minimum deposit of 5% of the purchase price.
You will need to finance a minimum of 80% of the purchase price (this includes your 5% deposit). If you can afford more than 85% of the purchase price you may not be eligible for Help to Buy assistance.
Buyers will be provided with an equity loan of up to 20% of the value of the property. This will be interest free for the first five years.
From year 6 of your equity loan, a fee of 1.75% per year will be levied, payable on a monthly basis. Thereafter this will rise each year in April by the Consumer Price Index (CPI), plus 2%.
You should be aware that the interest payments you make do not go towards repaying your equity loan.
You must repay the equity loan when you pay off your repayment mortgage, sell your home or reach the end of your equity loan term (normally 25 years) - whichever is the sooner.
You can pay off your equity loan in full any time before then or make part payments. Your first part repayment will need to be at least 10% of what your home is worth at that time.
No, the scheme is only available with a repayment mortgage.
No, the scheme is only available on owner occupied properties (i.e. occupied by the person who has taken out the mortgage). You cannot purchase a property with Help to Buy and then rent it out.
Up to 20% of the property market value is repayable, whether the value is less or more than the original full purchase price.
Yes, you pay a £1 monthly management fee by Direct Debit until the equity loan is repaid in full.
If you are interested in finding out more about Help to Buy:Equity Loan, please find the Help to Buy Agent for your area via: Find a Help to Buy Agent- Own Your Home
Further details can be found at https://www.helptobuy.gov.uk/
View the government’s Homebuyers’ guide for more information and how to repay your Help to Buy: Equity Loan.
THE HELP TO BUY:EQUITY LOAN ENDS ON 31 MARCH 2023
To be eligible for equity loan funding you must legally complete and get the keys to your home by 31 March 2023.
To apply for Help to Buy, you must reserve your home with Orbit Homes and submit your Property Information Form to your Help to Buy Agent by 6pm on 31 October 2022.
Terms and Conditions
*Available on selected outright purchases only. Subject to scheme specific units and home types and may not be available on a property you select, ask our Sales Consultants for availability and terms & conditions that may apply.
** Help to Buy:Equity Loan is subject to eligibility, terms and conditions.