Help to Buy is an equity loan scheme where you only have to pay 80% of the property price upfront (or greater if you can afford more).
With Help to Buy, you need just a 5% deposit, and then a mortgage as normal to purchase your property, and this would be for 75% of the purchase price. This is known as the ‘first charge’. The 20% balance is then provided by the Government, and is known as the ‘second charge’.
You have to pay the outstanding 20% (second charge) of your property by the end of your 25 year mortgage term based on its market value at that time. You can do this in stages. Each repayment must be for a minimum of 10% of the market value of your property at the time of repayment.
For the first five years there is no fee charged on the second charge. At the start of the sixth year a fee is collected. This fee is 1.75% per annum on the outstanding amount of the second charge. The annual fee of 1.75% will be uplifted by CPI plus 2% p.a.
You can also sell your property at any time within the 25 years and keep your share of the sale price. The Government are entitled to the percentage share of the market value they hold in the property at the time you sell it. This means you benefit from any increase in value of your property.
Terms & Conditions
- Help to Buy is available to all buyers seeking a new build home not just first time buyers, with a maximum purchase price of £437,600 for properties in the South East region.
- No household annual income limit.
- You must buy the Thomas Homes property with a mortgage from a qualifying lender and it must be your principal residence.
- Normal fees apply to the purchase of your new home.
- Stamp Duty is payable on the full price of the property, subject to standard rules and procedures.
- Any fees or terms and conditions associated with your mortgage will apply as normal.
- Standard fees and costs will be incurred as part of the repayment process (e.g. valuations).
- Help to Buy is only available on selected plots at certain Thomas Homes developments. This scheme may be withdrawn at any time.
- No other incentive schemes can be used in conjunction with Help to Buy.
- Further details are contained in the Help to Buy Buyers Guide, and full terms and conditions are detailed in the contract.
Own a brand new home with just a 5% deposit.
Benefits of Help to Buy include:
Very low deposit
Struggling to save a 20% deposit? With Help to Buy you could buy your own home for as little as 5% deposit.
Available to first time buyers
Get on the property ladder now and enjoy your new home immediately. See terms and conditions.
Low monthly payments
It’s not just the deposit that’s low - ask our sales team for a current example of typical repayments.