Help To Buy from Abel Homes
Abel Homes has become the first Norfolk-based house builder to be accredited to offer the Government’s Help To Buy scheme – enabling house-hunters to buy one of their new homes with just a 5% deposit.
What is ‘Help to Buy’?
With a Help to Buy equity loan, the government loans you up to 20% of the cost of a new build home, so you only need a 5% deposit and a 75% mortgage to make up the rest. Help to Buy equity loans are open to both first time buyers and home movers on new-build homes worth up to £600,000.
How does it work?
Buyers can apply for an equity loan to fund up to a maximum of 20% of the full purchase price.
| Cost | Percentage | |
|---|---|---|
| Property purchase price | £244,995 | |
| Your mortgage | £183,746 | 75% |
| Help to Buy Equity loan | £49,000 | 20% |
| Cash deposit | £12,249 | 5% |
Help to Buy Calculator
Use our Help to Buy Calculator to discover how much deposit you would need to secure your dream home.
Where are Help to Buy homes available?
Help to Buy homes are now available at all Abel Homes developments: hus 46+, Watton, Swan’s Nest, Swaffham and The Hops, Hingham.
Can I use Help to Buy for a buy-to-let property?
The scheme is only available on properties that will be occupied by the person or persons who have taken out the mortgage.
What happens when I sell my property?
When you sell your Help to Buy home (unless you have chosen to repay your equity loan earlier), you must repay the Help to Buy assistance from a share of the sale proceeds. So, if the government assisted your purchase with a 20% contribution, your repayment will be 20% of the total market value when it is sold.
When will the loan need to be paid back?
The equity loan must be repaid after 25 years or earlier if you sell your home. You will need to repay the same percentage of the proceeds of the sale to the government as the initial equity loan (i.e. if you received an equity loan for 20% of the purchase price of your home, you must repay 20% of the proceeds of the sale).
Equity loan fees
You won’t be charged loan fees for the first 5 years of owning your home. In the 6th year, you’ll be charged a fee of 1.75% of the loan value. After this, the fee will increase every year. The increase is worked out by using the Retail Price Index plus 1%.
Where can I find out more?
Further details on all these points and the buying process are set out in the Help to Buy Buyer’s Guide which you can download here.
You can also find out more on the Homes and Communities Agency website.
To apply for Help To Buy please contact a Mortgage Advisor.
