What is the Help to Buy: Equity Loan scheme?
This is a government scheme for first-time buyers. It provides a loan, called an equity loan, that you put towards the cost of buying a new build.
Help to Buy aims to help first-time buyers to get on the property ladder. If you’re eligible for an equity loan, you can borrow up to 20% (40% if you’re in London) of the market value of a new build.
During the term of the equity loan, you only pay interest on the amount you borrowed. You do not pay off any of the loan itself. But you can choose to pay all or part of it off at any time. If you sell your home, you will need to pay off all of your equity loan.
You can only apply for an equity loan if you reserve a new build from any of the homebuilders registered with the Help to Buy scheme. Chevin Homes (Derby) Limited are a registered homebuilder.
The Help to Buy scheme differs depending on where you live, there are regional price caps in England and variations of the scheme for London and Wales. Currently in the East Midlands, the price cap is:
Maximum price for a home – April 2021 to March 2023
East Midlands – £261,900
You can find more information about the home buying process in this link: homebuyer’s guide to Help to Buy: Equity Loan (2021-2023)