For some buyers, being able to secure a mortgage may not be a problem, but saving a big enough deposit may feel like an endless and ongoing task that may never happen.

This is where the Help to Buy scheme becomes a more attractive, viable option. The Help to Buy scheme is also known as an ‘Equity Loan’. This scheme provides that new build homes are available to all home buyers, not only to first time buyers. A deposit of only 5% is required at the point of exchange of contracts, instead of the usual 10%. On top of this, the government lend you up 20% of the purchase price on specified developer’s newly-built homes. These may have a value of up to £600,000.00.

It is a reflection of the surging property prices within the capital that the government have now increased their lending from 20% to 40% of the purchase price, if the property is situated within a London borough.

The first stage is to contact your local Help to Buy agents who will assess and approve your purchase for Help to Buy. You will need their approval before you can proceed with the buying process. The scheme is available in England from house builders who are registered to offer the Help to Buy scheme.

You will not pay any interest on the government/equity loan for the first 5 years. After this, 1.75% interest will be charged on the equitable loan rising each year by any Retail Prices Index (RPI), plus 1%. The equitable loan will become repayable after 25 years, or upon the sale of the property if earlier.

Here at QualitySolicitors Amphlett Lissimore, our specialist Lawyers Asan Valimahomed and Kavitha Rajah are fully equipped to act on your behalf and can guide you through the process.