Opening the door to your new home?
Help to Buy
We are pleased to say that first-time buyers can buy many of the properties built by Gleeson Build and Develop with the Help to Buy Scheme.
HOW IT WORKS
EQUITY LOAN
The government lends you up to 40% of the cost of your newly built home.
You pay a deposit of 5% or more and arrange a mortgage to make up the rest.
You won’t be charged interest on the equity loan for the first five years of owning your home.
PAYING BACK THE EQUITY LOAN
FOR THE FIRST FIVE 5 YEARS:
The equity loan is interest free. The only extra cost is a monthly management fee of £1 by Direct Debit.
FROM YEAR 6:
You will continue to pay the £1 monthly management fee and the interest fee of 1.75% of the equity loan will be charged monthly.
Note that you only need to repay the equity loan in full when you pay off your mortgage, sell your home or come to the end of your equity loan term. You can also choose to pay off your equity loan any time, in full or in 10% chunks before the end of the loan period.
IN SUMMARY
The amount you borrow is a percentage of the value of your new home. The amount you pay back is the same percentage of the value of your home.
This means, if the value of your home rises, so does the amount you owe on your equity loan. It works both ways, so if the value of your home falls, the amount you owe on your loan falls too.
