Offers   »   Help to buy

Help to Buy: Important things to remember

  1. First-time buyers only

The scheme is only available for first-time buyers. This is defined as someone who’s never owned a property before in the UK or overseas. If you’re buying with someone else, they need to be a first-time buyer, too.

  1. Your property price matters

If you’re hoping to buy a home through the Help to Buy scheme, you’ll need to consider the property price. The maximum price will depend on where you’re buying. For example, in London, the maximum property price eligible for Help to Buy is £600,000. In the North West, however, it’s £224,000.

Here’s the full list:

  • London: £600,000
  • South East: £437,600
  • East of England: £407,400
  • South West: £349,000
  • East Midlands: £261,900
  • West Midlands: £255,600
  • Yorkshire and The Humber: £228,100
  • North West: £224,400
  • North East: £186,100

If the property you’re hoping to buy exceeds the maximum value based on its location, you won’t be able to benefit from the Help to Buy scheme.

  1. New build homes

The Help to Buy scheme is only available on new build homes. You won’t be able to use the equity loan to buy a home that’s already been lived in.

As well as being a new build, your home must also have been built by a registered Help to Buy homebuilder, like Bloor Homes.

How do I pay off the Help to Buy equity loan?

The Help to Buy equity loan is interest-free for the first 5 years. From year 6 onwards, you will start to pay interest fees on your equity loan. These interest fees will initially be calculated at 1.75% of the outstanding equity loan amount and will increase year on year.

You can pay off all or part of your equity loan at any time. If you wish to pay off parts of your equity loan, you can – this is called ‘staircasing’. When made, part payments must be at least 10% of what your home is worth at the time of repayment.

When working out which way is best for you to pay off your Help to Buy equity loan, you’ll need to factor in the costs for a valuation and legal fees. With this in mind, you may decide it’s cheaper to pay your equity loan off in one go.

For the duration of your equity loan, you’ll need to pay a £1 monthly management fee by Direct Debit. These payments will continue until your equity loan has been paid in full. This, alongside the interest fees you’ll pay after year 5, won’t reduce the amount you owe, as they don’t go towards paying back your Help to Buy equity loan.

How do I apply for the Help to Buy scheme?

If all of this sounds good to you, then we’ll help you to get everything moving.

Here’s how the process works:

1)  Select your Bloor home at one of our participating developments. Then, pay the reservation fee of £500 to secure your dream home.

2)  Apply for the Help to Buy equity loan through the relevant government appointed Help to Buy Agent.

3)  Once approved, you’ll be given an ‘Authority to Proceed’.

4)  We’ll help you to choose a solicitor and independent financial adviser to make sure the purchase of your new home runs smoothly.

5)  You will then need to apply for the required mortgage amount (up to 75%).

6)  Now’s the time to sit back and relax while we get your new home ready. Don’t worry, though, we’ll provide you with plenty of updates along the way.

7)  Then, once everything’s finalised, you can move into your new home and start your exciting journey as a new homeowner.

Ready? To get started or find out more information about the Help to Buy scheme, get in touch with us by calling 01530 270 100 or by sending an email to hq@bloorhomes.com.

FAQ's

Do you have a few questions about the Help to Buy scheme? Please take a look through our FAQ's below, where your questions will be answered...

Can you clarify the equity loan element?
The Government will provide you with an equity loan up to 20% value of the property. This loan 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%.
What are the repayment terms of the equity loan?
You can repay the loan any time within the first 25 years (or the terms of the mortgage), or when you sell the property.
Is the scheme available on pre-owned homes?
The Help to Buy equity loan scheme is only available on new-build homes like those built by Bloor Homes.
Can I use the scheme if I already own a home?
The Help to Buy equity loan scheme is available only available to first time buyers..
Is the scheme available as a buy-to-let option?
The Help to Buy scheme is only available to purchasers using the property as their main residence.
What mortgage types are available with Help to Buy?
Repayment mortgages are the only option with this scheme.
Where can I get financial advice from?
Bloor Homes can put you in touch with a list of recommended financial advisers who can assist you every step of the way.

*Help to Buy and all Bloor Homes’ incentives and schemes are subject to terms and conditions and are available on selected developments and selected plots only. Help to Buy is available on selected new homes in England, within the set regional price cap, and is available to first time buyers only. For full details on plot eligibility, please speak with the Sales Team.

Images are representative only, are intended to be a preliminary guide and should not be relied upon. Full terms and conditions can be found here.

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