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Orbit Homes Help To Buy

Help to Buy

The Government-backed Help to Buy: Equity Loan Scheme 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.

‘Help to Buy’ is a Government-backed equity loan scheme 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 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 owner occupiers
  • The maximum home purchase price varies by region
  • There is no upper limit on your household income
  • It is not a Shared Ownership Scheme - you will own 100% of your home
  • Available on selected Orbit Homes developments*
Orbit Homes provides Help to Buy properties

Example house price

The following is an example of how Help to Buy would work when purchasing a property for £200,000. 

A Help to Buy example based on £200,000 purchase price
Help to Buy example calculation

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.

 

 

An Orbit Homes interior image

 

Further details of the scheme can be found at https://www.helptobuy.gov.uk/ 

View the government’s homebuyers’ guide for more information about the scheme and how to repay your Help to Buy: Equity Loan.

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 is available subject to eligibility, terms and conditions.

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