The Help to Buy Equity scheme has been designed to help buyers who are looking to get onto the property market or move up the ladder and buy a bigger home. Provided you have a deposit of at least 5%, the Government will lend up to 20% of the value of the property while you'll need a mortgage for the remaining 75%.
The Help to Buy Equity Loan is only available on new homes up to the purchase price of £600,000. There is no interest to pay for the first five years but after that you will be charged a fee of 1.75% based on the value of the loan. This fee rises annually according to any increase in the Retail Price Index (RPI) plus 1%.
In order to get the most accurate results from the Help to Buy Calculator, it's important to consider how much deposit you have available, taking into consideration other property purchase costs.
The next step is to use the sliding scale to enter the value of the property; this will indicate how much the Government may be able to lend based on your deposit and is calculated on the basis that the Government will offer a loan equating to 20% of the total purchase price.
Our calculator will also reveal the amount of mortgage required based on 75% of the property's purchase price, and this is the mortgage amount you will require.
Work out your typical monthly repayments
Having worked out your maximum purchase price based on your deposit, you can now go on to work out what your typical monthly repayments would be. This is based on the amount of mortgage you will be borrowing, and while this is prepopulated from your results, you can also enter an amount, which is useful if you want to see how your monthly repayments could be affected.
To calculate this figure, you must select the interest rate and the mortgage period. You can do this via the sliding scale, however it's important to note that both these factors will affect your repayments.
It's worth mentioning that you need to be able to comfortably afford the repayments, so try not to stretch your funds too far and make sure your budget allows for other eventualities.
This calculator is intended as a guide only and does not take into account other fees that you will be accountable for when taking out a mortgage. For advice and guidance you should speak to an independent mortgage broker/advisor, who is authorised to provide financial advice based on your specific circumstances.
Visit the Help to Buy Equity Loan scheme page to find out more information.
Your house may be repossessed if you do not keep up repayments on your mortgage.
This does not constitute financial advice. We recommend you obtain advice from an independent mortgage broker. We have recommended brokers who specialise in new build and Help to Buy, the details are available at each of our sales centres.
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