With a Help to Buy: equity loan the Government lends you up to 20% of the cost of your new-build 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 ﬁve years of owning your home.
Example: for a home with a £200,000 price tag. If the home in the example above sold for £210,000, you’d get £168,000 (80%, from your mortgage and the cash deposit) and you’d pay back £42,000 on the loan (20%).
You’d need to pay off your mortgage with your share of the money.
Once you have found a suitable new-build property with a participating, registered builder – you will need to complete a Property Information Form and Reservation Form with the builder.
Both forms will then need to be submitted to Help to Buy South West.
We will then issue you an Authority to Proceed (ATP) document. Please do not apply for a mortgage until you have received this. The ATP will also advise you of the next steps.