Homes You'll Love Inside Out
Help to Buy is a Government-backed scheme for first time buyers or existing home owners looking to move into a brand new home and is available at all Elan Homes developments. Help to Buy is available on new homes priced up to £600,000 in England.
The Government will lend you up to 20% of the value of your new home through an equity loan that’s interest free for five years. You will need have access to a deposit of 5% and obtain a mortgage of 75%. For example if the house you were buying cost £200,000, you would need a minimum 5% deposit (£10,000), the government would loan 20% of the cost of your new home (£40,000) and you would need a 75% mortgage from a qualified lender (£150,000)
Under this scheme, the equity loan can be repaid at any time before the 25 year period or on the sale of the property.
You’ll need to meet the below conditions to purchase using Help to buy.
• The home you purchase must be the only home you will own and live in
• The home must be a newly built property.
• You will need to have at least 5% deposit funds and be able to get a mortgage for 75%.
• You must live in the home you are buying and the property can not be rented out.
•You will not be able to use the help to buy scheme if using our Part Exchange scheme.
From April 2021 the Help to Buy scheme criteria is changing, it will only be eligible for first time buyers and will include new regional price caps, as can be seen below. The way the scheme works, as mentioned above, will not change however.
Regional Price Caps:
Region Price cap for properties eligible for Help to Buy from April 2021 to March 2023
North West £224,400
West Midlands £255,600
South West £349,000
What does this mean for you, as potential Elan purchasers?
Well, to be able to purchase a home under the current Help to Buy scheme, the home must be build complete by 26th February 2021 and you will need to move into it by 31st March 2021. Any purchasers after this date will fall under the new scheme and will only be available to first time buyers.
Please speak to one of our sales executives who will let you know what homes will fall under the current scheme and what will be available under the new scheme.