This option is available to all those who aspire to own a new-build home, but struggle to access or afford the repayments on a low deposit mortgage. It is only available to first time buyers.

Key points

• The government will lend the client up to 20% (40% in London) of the value of the property through an equity loan, which can be repaid at any time or on the sale of the home.
• The maximum full purchase price is £600,000.
• There are no payments on the loan for the first five years.
• After five years, there is a fee of 1.75%, which increases annually in line with RPI plus 1%.
• The client will need to obtain a mortgage to purchase through this scheme.
• The client will need a minimum of 5% deposit.

Your property may be repossessed if you do not keep up repayments on your mortgage.

A further element of the Help to Buy scheme is the government-backed mortgage indemnity guarantee scheme. This became available to lenders to help them provide more mortgages to all types of homeowners who can’t afford a large deposit.

Key points

• Can be used towards a newly built home or an existing property.
• The client will need a 5% deposit.
• Available to existing homeowners as well as first-time buyers.
• The maximum full purchase price is £600,000.