Government ‘Help to Buy’ Scheme
In April this year, the Government implemented the new Help to Buy equity loans for first time buyers. If a first time buyer secures a mortgage for 75% of the purchase price and can provide 5% of the deposit themselves, the government will provide an equity loan for the remaining 20%. There is no interest for the first 5 years and the loan can be paid off once the house is eventually sold.
The popularity of the scheme has exceeded expectation and there are currently 500 loans being taken out each week.
The scheme is due to run until 2017.