With Help to Buy, getting on the London property ladder has never been easier. We are pleased to say that first-time buyers can buy any of the properties on the Craft Mews development with the Help to Buy Scheme.
The government lends you up to 40% of the cost of your newly built home.
You pay a deposit of 5% or more and arrange a mortgage of 25% or more to make up the rest.
You won’t be charged interest on the 20% loan for the first five years of owning your home.
The 20% equity loan is interest free. The only extra cost is a monthly management fee of £1 by Direct Debit.
You will continue to pay the £1 monthly management fee and the interest fee of 1.75% of the equity loan will be charged monthly. Your interest fee will rise each year in April by the Regional Price Index (RPI) plus 1% until you repay your loan.
Note that you only need to repay the equity loan in full when you pay off your mortgage, sell your home or come to the end of your equity loan term. You can also choose to pay off your equity loan any time, in full or in 10% chunks before the end of the loan period.
The amount you borrow is a percentage of the value of your new home. The amount you pay back is the same percentage of the value of your home.
This means, if the value of your home rises, so does the amount you owe on your equity loan. It works both ways, so if the value of your home falls, the amount you owe on your loan falls too.