- Help to Buy is a government-funded initiative designed to help those who cannot otherwise afford to buy a home that meets their needs. The scheme comprises two parts:
- A ‘mortgage guarantee’, which helps you buy a home with a deposit of 5%. It’s open to both first-time buyers and home movers for new-build and older homes in the UK with a purchase price up to £600,000
- An ‘equity loan’, where the government will lend you up to 20% of the value of your newly-built home. Again, a minimum 5% deposit is required, and the maximum purchase price is £600,000 Help to Buy and the housing market
- Hardly a week goes by without Help to Buy making the headlines. With the scheme so closely linked with the housing market, there are opposing views on whether the scheme should stay or go. All of the UK’s main housing market indicators have registered an annual rise in property prices, with Nationwide reporting a 10.9% rise in the year to April 2014 – a trend many people attribute to the scheme.
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