01/04/2018

Four in ten home purchases in the South West use Help To Buy

Figures from house builder, Bloor Homes South West, have revealed that almost four in ten home purchases are being made across the region using the government-backed Help to Buy scheme.

The developer has seen strong uptake of the scheme across its developments in the South West, with take-up rates peaking at its Bloor Homes at Pinhoe (61%), Chestnut Park, Yatton (59%) and Filands View, Malmesbury (50%) sites.

Commenting on the figures, Sara Parker, Regional Sales Director for Bloor Homes South West, said: “Help to Buy is available at all of our developments and is certainly helping many of our buyers to finance their new homes.

“With Help to Buy, the Government loans up to 20% of the cost of a newly built home (or 40% within Greater London), so buyers only need a 5% deposit and 75% mortgage. No interest is charged on the Government loan for the first five years.

“It is a widely held misconception that Help to Buy is only available to first time buyers. Whilst it is certainly being used by many to help fund that first step onto the property ladder, many of our buyers are also taking advantage of the scheme to secure their next home. We have seen families use Help to Buy to move up into larger properties that better meet the needs of their growing families, as well as buyers who are relocating to a new area.”

First-time buyers, Adam Briscoe (24) and his partner, Santa Sona (23), used Help to Buy to fund the purchase of their new home in Chestnut Park, Yatton. Adams explains: “We wanted a house of our own to enjoy together and with family and friends. Using Help to Buy, we moved into a two-bedroom home at Chestnut Park in April 2018. Help to Buy gave us a helping hand and enabled us to afford our dream first home with greater comfort.

“Buying new meant we were able to put our own stamp on the property without having to undertake any major, costly renovation works. Thanks to Help to Buy, we have been able to take our first step onto the property ladder, with a spacious and comfortable new home.”

Bloor Homes’ Sara Parker explains the key points of the scheme:

  1. Help to Buy is available across all Bloor Homes developments in England on homes worth up to £600,000.
  2. Help to Buy is a government-backed scheme that enables buyers to purchase a property with just a 5% deposit and 75% mortgage.The remaining 20% of the purchase price is provided as an equity loan, which is interest free for the first five years.From year six, a fee of 1.75% is payable and will rise annually by RPI inflation plus 1%.
  3. The equity loan provided by the government is up to 20% of the value of the property.
  4. Existing homeowners can use Help to Buy, however they must have sold their existing property before completing their Help to Buy purchase.
  5. Help to Buy will not be available to existing homeowners after 2021.The scheme was due to end in 2021, but the Government has extended the scheme until 2023, however this will just be for first-time buyers and a regional price cap will be introduced.
  6. From 2021, Help to Buy will only be available on new build properties in the South West up to the value of £349,000.
  7. There is no buy-to-let option within the scheme.It is only available to purchasers using the property as their main residence.
  8. Repayment mortgages are the only option with this scheme.

Sara concludes: “Help to Buy has already helped many of our buyers to secure their dream home. I would encourage prospective purchasers to make the most of the chance to use the scheme before the restrictions are introduced in 2021. House hunters can speak to our sales advisors to find out more about how Help to Buy could help them.”