Simple and easy – it’s the best way to get onto the property ladder!
Sophie and Luke, a Content Editor and Marketing Manager from Waterlooville, were keen to get on the property ladder so they began their journey by opening a Help to Buy ISA. Through this, the couple were then introduced to the Help to Buy Equity Loan scheme. In order to find out more about their options, the couple attended the Hampshire Help to Buy Show.
“During our search period we attended the Help to Buy show in Southampton, which really inspired us to get the ball rolling by talking to a financial advisor.”
Sophie continues, “The process was a delightful experience, I’d do it all over again! We were always kept in the loop with the development process and we could always contact someone if we had any issues, which was great. The completion date we were originally given was May-June and we moved in end of April. We were over the moon!”
Luke adds, “The house is based near where we’ve both grown up and that was key when finding a home. It had to be located near family and friends and within a good distance for us to both commute to and from work.”
The Government launched the Help to Buy Equity Loan Scheme to help make it easier for people to buy property with smaller deposits. The Government can lend you up to 20% of the cost of your home, so you’ll only need a 5% deposit and a 75% mortgage to cover the rest of the property value. As well as that, you won’t be charged any fees on the loan for the first five years of owning your home. *
Like Sophie and Luke, if you are saving to buy your first home, you are also able to save money into a Help to Buy: ISA and the Government will boost your savings by 25%. The maximum government bonus you can receive is £3,000.
Sophie and Luke have gone from living with their parents and saving to buy a house to owning a perfect, brand new home.
“Our new home is gorgeous”, says Sophie, “it has more room than we could have ever imagined. We have plenty of room to relax, and to entertain in. Our favourite room is probably the kitchen as it exceeded our expectations – it’s lovely and spacious.”
Sophie and Luke say they would definitely recommend the scheme to other people as it’s “simple and easy – it’s the best way to get onto the property ladder.”
* The equity loan is interest free for the first five (5) years, but in the sixth (6) year of ownership, a fee of 1.75% of the equity loan based on the market value at the time you purchased is payable monthly, rising annually by the increase (if any) in the Retail Price Index (RPI) plus 1%. This is applicable if you have not paid back your equity loan by the end of year five (5). An illustration will be given to you at the time of purchase.