The Government’s Help to Buy schemes are aimed at encouraging more first time buyers to step onto the property ladder and for existing home owners to move up the ladder. This is particularly good news for buyers with small deposits (5% or over).

There are two Help to Buy schemes:

Help to Buy – Part I

Beginning in April 2013, it allows purchasers of New Build properties to borrow up to 20% of the property’s value from the Government. These loans are interest-free for the first five years. The purchaser needs to contribute a deposit and the mortgage and deposit must cover 80% of the total purchase price.

Help to Buy – Part II

The Government announced this week that the second phase of the Help to Buy scheme will be moved forward by 3 months and begin in October 2013. Help to Buy – Mortgage Guarantee allows buyers to purchase new or second hand homes up to the value of £600,000 with a mortgage deposit of just 5%.

The remainder of the mortgage loan will then be provided by an approved lender – with 15% of this loan guaranteed by the Government for a period of 7 years. This is in return for a fee paid for by the lender.

Who’s eligible for support from Help to Buy?

  • Existing home owners and first time buyers
  • Buyers with a minimum deposit of 5% of the purchase price
  • Available on properties up to £600,000
  • Must not be a second home
  • Available to British citizens
  • Properties in the UK
  • Buyers who are borrowing from a participating lender

How could it help you?

Are you a First Time Buyer who knows you can afford mortgage payments (in many cases they are lower than rental payments) but just can’t afford a steep deposit? Now is a great time to buy your first home. Already own a home but you’re stuck in the negative equity trap because the value of your home has not increased? This is a great opportunity for you too.

At Joplings we feel the Help to Buy scheme will aid clients to purchase properties and get their foot on the property ladder, but have struggled to save the 15% – 20% deposit required. These prospective purchasers have been living in rented accommodation or in the family home with parents, trying to save for a deposit.

The past few months has seen confidence return to the market, with increased activity and more properties going under offer than we have experienced since the downturn. Properties coming onto the market, that are realistically priced, are generating viewings and interest leading to sales.

We expect the scheme to help buyers who have been struggling to save in hard economic times. Many buyers can just about save for a 5% deposit, when previously a large deposit was unachievable or being funded by generous loans from family.

The early signs are positive with an increase of activity in both our offices. The scheme is a welcomed boost to help the confidence of buyers and prospective purchasers return to the market.


Please call in to discuss your requirements - our friendly staff are always happy to help

10 North Street, Ripon North Yorkshire, HG4 1JY Telephone: 01765 694800 Fax: 01765 694801
19 Market Place, Thirsk North Yorkshire YO7 1HD Telephone: 01845 522680 Fax: 01845 526055