Am I eligible for the Help to Buy Equity Loan Scheme?

The Help to Buy Equity Loan scheme is open to both first time buyers and existing homeowners. 

There is no income cap for applicants and you can buy a new-build property with a value of up to £600,000.

You need to be able to afford and sustain the mortgage payments on your chosen property - we will check this when we receive your application but we would recommend that you take independent financial advice as early as possible so you can find out how much you can borrow.  If you are unsure where to go for mortgage advice you can find details of our panel independent mortgage advice companies on our website here.

If you already own a property (either in the UK or abroad), you must sell it as you cannot own two properties if you are using the Help to Buy Equity Loan Scheme. The disposal of your current home will be verified by your solicitor/conveyancer before you can proceed to exchange contracts on the Help to Buy home.

 

Am I eligible for Help to Buy Shared Ownership?

Help to Buy Shared Ownership (including Shared Ownership Resales & Rent to Buy) uses criteria to assess if people qualify for the scheme. 

You may be eligible for Shared Ownership if:

  • You can’t afford to buy a home on the open market
  • You have a household income of less than £80,000 per year
  • You are a first time buyer.  However, if you currently own or have previously owned a property, you may be considered for the scheme.  If you currently own a property, it will need to be "sold subject to contract" (you have formally accepted an offer on it) when you apply to us and must be sold when you complete the purchase of a new home.
  • You are at least 18 years of age
  • You have a good credit rating
  • You have at least £1,500 savings to cover the one-off costs involved in buying your new home, such as solicitor fees. This does not include any mortgage deposits, developer reservation fees or stamp duty (if applicable). Most schemes will require you to have a deposit of at least 5% of the share you are buying.

 

Are current home owners eligible?

 

Equity Loans

Current home owners are able to apply for an Equity Loan however they must sell their current home. Help to Buy is designed to assist you to move up the housing ladder and must be your only residence. This means you will be expected to sell your current home if moving up the ladder. The disposal of your current home will be verified by your solicitor/conveyance before you can proceed to exchange contracts on the Help to Buy Home.

Shared Ownership

Shared Ownership schemes are primarily aimed at first time buyers but if you currently own a property, it will need to be "sold subject to contract" (you have formally accepted an offer on it) when you apply to us and must be sold when you complete the purchase of a new home.

Existing shared owners who qualify for assistance are able to move from their existing shared ownership home and purchase a new build home under the shared ownership scheme. The existing shared ownership home must be disposed of at the point of purchase. 

 

Where can I find more information about getting a mortgage?

It's a good idea to visit a financial or mortage advisor as they are mortgage specialists who can give you advice about mortgages and more information about the sort of schemes that might suit you best. Any fees that may be charged will be fully explained to you. Click here to find out more about our Panel of Mortgage Advisors. 

You can also seek information from Money Advice Service.