What is it?
Help to Buy is a Government backed scheme to enable aspiring home owners with deposits of 5% to buy a property up to £600,000.
How does it work?
Buyers with a 5% deposit can apply for a government loan of 20% of the purchase price in effect giving the buyer a 25% deposit. The buyer then needs to take out a mortgage with a participating lender.
The Government part of the loan is free of charge for the first 5 years after which an annual fee of 1.75% is charged rising by 1% above the annual Retail Price Inflation.
When selling , repaying the loan or the mortgage period ending the 20% will reflect the value at that time not the value at the time of purchase.
As  from this month the scheme now applies to both new build and existing homes.
What Next
The above is a very basic guide -if you would like further information please speak to us or contact our Independent Financial Consultant Ashley Marsh of Ashley Christopher Ltd on  enquiries@ashleychristopher.co.uk