The government offers a number of Help to Buy products to help people to buy a home including a Help to Buy ISA which helps you save towards a deposit foryour first home, and a Help to Buy- Equity Loan where the government can provide eligible buyers with a loan towards your deposit – reducing the amount or cash deposit you need.
For more information on either of these schemes and to apply go to the help to buy website.
The Help to Buy: ISA allows you to save for a deposit and receive 25% bonus from the government for every £200 you save. For every £200 you save you receive a government bonus of £50. The maximum government bonus you can receive is £3000.
The accounts are available to each first time buyer, not each household. This means that if you are planning to buy with your partner, for example, you could receive a government bonus of up to £6000 towards your first home.
To be eligible for a Help to Buy ISA you must:
The Help to Buy: Equity Loan offers home buyers to opportunity to take an equity loan from the government for up to 20% of the cost of your newly built home, so you'll only need a 5% cash deposit and a 75% mortgage to make up the rest
You won't be charged loan fees on the 20% loan for the first years of owning your home. Equity loans are available to first time buyers as well as home-owners looking to move. The home you want to buy must be newly built with a price tag of up to £600,000.
You won't be able to sublet this home or enter a part exchange deal on your old home. You must not own any other property at the time you buy your new home with a Help to Buy: Equity Loan.