Help-To-Buy and buying property in Stourbridge and Halesowen

What Is Help-To-Buy?

Help to buy is a Government backed initiative set up to help both First Time Buyers and those looking to move up the property ladder, to purchase a property with as little as 5% deposit
There are two ways to purchase a property using Help to Buy; Equity Loan Scheme and Shared Ownership

Equity Loan Scheme

The Help to Buy equity loan makes new build homes available to all home buyers (not just first time buyers) who wish buy a new home, but may not have had a large enough deposit in the past. With a deposit of 5%, the Help to Buy Equity Loan scheme allows you to borrow an additional 20% of the purchase price of the property from the government; the loan is interest-free for the first 5 years.

The home will be in your name, which means you can sell it at any time. However, as this is an equity loan, you'll have to pay back the loan amount when you sell your home or at the end of your mortgage period - whichever comes first. The amount to be paid back is 20% of the sale price, which may be more than the original loan amount depending on whether your home has increased in value whilst you have owned it.

Shared Ownership

If you can’t quite afford the mortgage on 100% of a home, Help to Buy: Shared Ownership offers you the chance to buy a share of your home (between 25% and 75% of the home’s value) and pay rent on the remaining share. Later on, you could buy bigger shares when you can afford to.

You could buy a home through Help to Buy: Shared Ownership in England if:

• Yyour household earns £80,000 a year or less outside London, or your household earns £90,000 a year or less in London
• You are a first-time buyer, you used to own a home but can’t afford to buy one now or are an existing shared owner looking to move.

With Help to Buy: Shared Ownership you can buy a newly built home or an existing one through resale programmes from housing associations. You’ll need to take out a mortgage to pay for your share of the home’s purchase price, or fund this through your savings. Shared Ownership properties are always leasehold.

What Is A Help-To-Buy ISA?

If you’re a first-time buyer, you could get up to £3,000 from the Government by saving with a Help to Buy ISA (individual Savings Account).

You’ll need to put away up to £200 each month, and the Government will add 25% on top (so, a jammy £50 for every £200).

You can also save an extra £1,000 when you first open it, meaning you can save £1,200 in the first month and you'll get £300 extra.

The maximum that the Government will contribute is £3,000, meaning you've saved a total of £12,000 to put towards your first home