Help to Buy

In partnership with HM Government, we are offer the Help to Buy Equity Loan scheme at Mount Wise.

What is Help to Buy?

The Help to Buy Equity Loan is available on new build homes up to a value of £600,000 in England.

The Government, through the Homes & Communities Agency (HCA), will provide you with an equity loan of up to 20% of the value of the property which can be repaid at any time during the loan term (up to 25 years) or sooner on the sale of the property.

You’ll only then need to be able to secure up to a 75% mortgage from a bank or building society, meaning that typically you will only need to have to fund a 5% deposit.

Help to Buy Overview

With Help to Buy, the buyer (‘you’) buys a new home on a new build development such as Mount Wise with assistance from the HCA in the form of an equity loan.

You must take out a first mortgage with a qualifying lending institution e.g. a bank or building society. This mortgage, together with any cash contribution from you, must be a minimum of 80% of the full purchase price. The maximum full purchase price is £600,000. Your first mortgage must be on a repayment basis.

The equity loan must be repaid after 25 years or earlier if you sell your home. You must repay the same percentage of the proceeds of the sale to the HCA as the initial equity loan (i.e. if you received an equity loan for 20% of the purchase price of your home, you must repay 20% of the proceeds of the sale).

The equity loan is interest free for the first five years. After that you will pay a fee of 1.75% rising annually by the increase (if any) in the Retail Price Index (RPI) plus 1%.

Who can take part in the scheme?

  • It is open to all buyers seeking a new build home.
  • You must have access to a minimum 5% deposit.
  • Help to Buy buyers must be able to fund up to 75% of their selected property through a conventional repayment mortgage. Interest only mortgages are not permitted for Help to Buy.
  • Buyers must take out a first charge repayment mortgage with a qualifying lender and the maximum purchase price is £600,000.
  • The local Home Buy Agent (acting for the HCA) will carry out an assessment of an application by a potential Help to Buy buyer to ensure that they are in a position to afford a conventional mortgage for their proposed purchase.
  • The property purchased must be your only residence. Help to Buy is not available to assist buy-to-let investors or those who will own any property other than their Help to Buy property after completing their purchase.
  • You cannot rent out your existing home and buy a second home through Help to Buy.
  • Applicants who make fraudulent claims for Help to Buy assistance will be liable for criminal prosecution and immediate repayment of the Help to Buy loan assistance.

The Help to Buy scheme is not administered by the Developer (Mount Wise (Devon) Limited) or its agents so for further details on all these points, and the buying process, please review the Help to Buy Buyer’s Guide prepared by the HCA dated 8th April 2013 as amended from time to time.

Please speak to the sales team for more information.