Help to Buy is only available for new build properties and so a Phoenix Court Apartment is one property for which you could get help.
What is Help to Buy
Help to Buy is a Government scheme devised to help first time buyers with small deposits buy a home, and to help existing home owners with little equity to move. Though in the recent budget, it was announced that from 2021 until 2023 Help to Buy equity loans will only be available to first-time buyers.
For a new build property in Exeter, the Government will lend you up to 20% of the property’s value, the loan is interest free for the first five years. To take advantage of the scheme, you will need to have a deposit of at least 5% and a mortgage that will cover at least 75% of the property’s value.
For example, Plot 13 of Phoenix Court is a 2 bed ground floor apartment with private garden and allocated parking for sale at £174,950. If you had 5% deposit of £8747.50, the Government could lend up to 20%, being £34,990 and the remainder would be your mortgage of £131,212.50.
- Deposit £8747.50
- Help to Buy Loan £34,990
- Mortgage £131,212.50
You still borrow 95% of the purchase price but by doing it this way you only need a 75% mortgage, this will allow you access to better mortgage rates and the advantage of interest free payments for the first five years on the equity loan.
Watch the You Tube video here
You can find out more about the Help to Buy Scheme here.
Download the Government’s Help to Buy Buyers’ Guide PDF here