Help to Buy: Equity Loan
Scheme ends: 2021
Borrow up to 20 per cent of the cost of a new-build home from the government on homes up to £600,000. There is no interest to pay on the loan for the first five years.
All you need is a 5 per cent cash deposit and a 75 per cent mortgage to make up the rest. The local Help to Buy agent can help you with this scheme.
Help to Buy: Mortgage Guarantee
Scheme Ends: 31st December 2016
This works in exactly the same way as any other mortgage except that under the scheme the Government offers lenders the option to purchase a guarantee on mortgage loans. So if you have a 5 per cent deposit, you will need to take out and pay back a 95 per cent mortgage. Due to the Governments support, lenders taking part are able to offer home buyers more high-loan-to-value mortgages (80 to 95 per cent).
Forces Help to Buy
Scheme Ends: 2017
If you're a regular serviceman or servicewoman in the armed forces, the Forces Help to Buy scheme could let you borrow up to 50 per cent of your salary to a maximum of £25,000, interest free. This loan is for buying your first home or moving to another property on assignment or as your family's needs change.
To be eligible, all regular service personnel must:
- Have completed the pre-requisite length of service
- Have more than 6 months left to serve at the time they apply
- Meet the correct medical categories
However, there may be instances where exceptions to the standard rules may be justifiable, especially where you have extenuating medical and personal circumstances.
You can apply for the loan online through the Joint Personnel Administration system and can seek advice on your application through your chain of command and personnel agency.
Other government-backed housing schemes can be used together with Forces Help to Buy, except the Help to Buy Mortgage Guarantee.
Help to Buy ISA
If you're a first time buyer, save up to £200 a month towards your first home with a Help to Buy ISA and the Government will boost your savings by 25 per cent. That's a £50 bonus for every £200 you save. You can receive a bonus of up to £3,000. This means if you save £12,000, the government bonus will bonus will boost your total savings to £15,000. This scheme was launched on 1 December 2015.
Custom, Self Build and Housing Development Fund
The Homes and Communities Agency's (HCA's) Custom Build Serviced Plots Loan Fund provides a £150 million fund for schemes of between 5 and 200 housing units. Funding will be made available to support the development of serviced plots to help the growing number of people who want to custom build their own home.
Serviced plots are shovel ready sites with planning permission, where plots or parcels of land are laid out and ready for construction. Access is provided and each plot or parcel of land has utilities and services provided within its boundary.
Access to the fund is on a fully recoverable loan basis and is for private sector developers (particularly small and medium-sized), housing associations, Community Land Trusts or community groups.
Funding from other HCA programmes (for example the Builders' Finance Fund) can be applied for providing it is not for the same work. Any outstanding HCA loan must also be repaid ahead of any further funding.
Details at a glance
- To provide serviced plots to help custom builders secure a 'shovel ready' site.
- Addresses the challenges that custom builders face and supports people who want to build their own home.
- The fund provides short-term loan finance to help support schemes.
- Eligible qualifying expenditure includes on-site infrastructure costs; provision of on-site utilities; land preparation; demolition; fencing and landscaping; and professional fees.
- Schemes must deliver sites with five or more shovel ready plots ready for further development.
- Bidders must be a constituted body of good standing with the capability to deliver their project.
- Projects need to have outline planning permission (with reserved matters) as a minimum to qualifying for funding.
- Loans are available for residential projects only where the project leads to the construction of new custom builds.
- Bidding for the fund is available on a continuous basis until funds are allocated.
- The fund will make investments until 2019/20.
- Total funds must be claimed by 31 March 2020 and repaid by 31 March 2025.
More details can be found at on the Self Build Portal website.