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Help to Buy

Help to Buy is due to change from April 2021. To use the existing scheme, you must reserve your new home and submit your application by 15th December 2020. Find out how these changes may affect you:

Help to Buy is changing...

Help to Buy allows both existing homeowners and first time buyers the opportunity to purchase a property for just 5% deposit, with an additional Government-backed loan of up to 20%, interest free for five years*.

The current scheme is open to both existing and new home buyers until March 2021. However from April 2021, in England, only first time buyers can use the scheme, and there will be regional price caps on the value of the property you are able to purchase.

To use the existing scheme, you will need to reserve your new home and submit your application by 15th December 2020. The property must be built by 28th February 2021, and you must legally complete on your home by 31st March 2021. We’re here to help you with the changes, and with great incentives available across our developments, now is the time to reserve.

What is Help to Buy?

What is Help to Buy?

Help to Buy is backed by the Government and until April 2021, is available to both first-time buyers and existing homeowners. Designed to help people move on to, or up the property ladder, the initiative is available on new build properties with a maximum value of £600,000 in England.

The Help to Buy scheme differs depending on where you live – there are regional variations for London, Scotland and Wales.

How does it work?

With a Help to Buy equity loan, you can purchase your newly-built home with just a 5% deposit.

As part of the scheme, the government lends you up to 20% of the cost of your home, meaning that you’ll only need a 75% mortgage to make up the rest.

For the first five years, the government’s share of the loan is completely interest-free. You must repay the Help to Buy loan after 25 years, or earlier if you sell your home, repaying the same percentage of the proceeds of the sale of your home (i.e. if you received 20% on purchase, then you must pay 20% of the proceeds of the future sale).

The current Help to Buy scheme ends in March 2021, when a new Help To Buy scheme will come into place and run until 2023. This new scheme will be available to first-time buyers only, and it will be restricted to regional price caps.

You own 100%
of your home
Help to Buy diagram
1

Find and reserve your Bellway home

2

Apply for your mortgage with Help to Buy

3

Receive your mortgage offer

4

Move into your brand new Bellway home

Who’s eligible?

Who is eligible?

Help to Buy is currently open to everybody looking to buy a new-build home as their only residence, but from April 2021 this will change and the scheme will be limited to first-time buyers.

Find my home

Top FAQs about
Help to Buy

Are there any restrictions under the scheme?
A.

The property you purchase using Help to Buy must be your only home and you must live in it.

You cannot use Help to Buy in conjunction with part exchange on an existing home.

If you already own a home you will have to sell it before using Help to Buy.

Any mortgage used in conjunction with Help to Buy must be a repayment mortgage (not an interest-only mortgage).

You must seek permission to extend, or alter the property purchased using Help to Buy.

Can I buy any property using Help to Buy?
A.

The scheme is only available to new build homes, and price caps do apply. See our individual guides for more information on how the Help to Buy scheme may differ in your area.

How much deposit do I need?
A.

You need a 5% deposit.

How much can I borrow using Help to Buy?
A.

The amount you can borrow varies by country and area. In England and Wales you can borrow up to 20% of the cost of the property, though in London this figure is up to 40%. In Scotland you can borrow up to 15% of the purchase price of a new-build home. Maximum property prices under the scheme are £600,000 in England, £300,000 in Wales and £200,000 in Scotland.

Is the equity loan interest-free?
A.

Help to buy is interest-free for the first five years, however, there is a management fee of £1 per month until the loan is repaid. After five years interest will apply – currently 1.75% in year six, then 1.75% and any increase in the Retail Prices Index (RPI) plus 1% each subsequent year.

When do I have to repay the loan?
A.

You must repay the equity loan after 25 years, or if earlier, when you sell your home. There is no set deadline in Scotland.

Can I repay the loan early?
A.

You can pay back all, or part, of the loan at any time, with a minimum of 10% of the prevailing market value of your home (5% in Scotland).

The Help to Buy scheme works slightly differently depending on your location.
Make sure to get the right information.

More than a home builder

All you need when it comes to finding your new home

*YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT. Help to Buy is subject to the Homes and Communities Agency’s (HCA) terms and conditions and is available on new build homes on selected Bellway developments up to £600,000 to customers where the property represents their only residence. Not available on second, additional homes, buy-to-let or let-to-buy properties. HomeBuy agent eligibility check required. The equity loan is interest free for the first five years, up to a maximum of 20% of the purchase price. After five years, an annual fee of 1.75% of the outstanding equity loan is charged. This is increased annually by RPI plus 1%. The equity loan must be repaid after 25 years, or earlier if you sell your home. A monthly management fee of £1 is payable by the equity loan borrower by direct debit, from the start of the loan until it is repaid. The management fee and interest fees are not capital repayments to the equity loan and do not reduce the amount owing. Help to Buy operates under terms and conditions imposed by the HCA and may be subject to change. Please visit www.helptobuy.gov.uk for further information. Help to Buy cannot be used in conjunction with other schemes. Information correct at time of publish. Help to Buy is due to change in April 2021 based on current Government guidance. Please see https://www.helptobuy.gov.uk/equity-loan/eligibility/