Help To Buy Reaches Its 5th Year Anniversary


Help To BuyIn 2013 the Coalition government led by David Cameron and George Osborne created the Help to Buy schemes. The schemes include Help to Buy: Shared Ownership and Help to Buy: Equity Loan which helps hard-working people like you take steps to buy your own home. The Help to Buy scheme makes it possible to buy a home with just a 5% deposit whilst Help to Buy: Shared Ownership deposits are typically much lower than buying traditionally.

New Build developers in the UK have seen a rise in First-time buyers purchasing homes. Naturally, New Build homes are an attractive option for first-time buyers because of the government Help to Buy schemes available and the convenience of moving into a brand-new property which requires no renovation – something which can be very costly.

The Help to Buy ISA pays first-time buyers a government bonus. For example, save £200 a month and Help to Buy add £50, up to a maximum of £3,000, boosting your ISA savings of £12,000 to £15,000. The Help to Buy equity loan is interest-free for the first 5 years. After this, borrowers are charged a rate of 1.75%, with this rate slowly increasing year-on-year in line with the Retail Price Index (RPI) plus 1%. Interest payments are paid on top of mortgage repayments.

It has been 5 years since the government launched its flagship programme and has supported close to 117,000 first-time buyer purchasers.  With 13,500 loans set to mature in 2018 adopters now need to decide how to pay back the government’s loan.

1 in 7 loans to first-time buyers has been to a purchaser across the South East, with average prices have increased by the equivalent of £67,260. With the exception of London, those in the East of England have seen the average value of their property rise the most. Just 8% of loans have been issued to purchasers in London, however, first-time buyer property prices have increased by over one third since 2013.

No doubt industry bodies will watch with interest to see whether adopters re-mortgage, sell up or pay back their loans from another source.

The popular Government-funded Help to Buy Equity Loan is available until 2021. The scheme was extended through a further £8.6 billion in Government funding.

If you would like to discuss the Help to Buy scheme in further detail, please contact the team via our main switchboard number 0121 778 2371 or alternatively email

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