This website stores cookies on your computer. These cookies are used to improve our website and provide more personalised services to you, both on this website and through other media. To find out more about the cookies we use, and information on how to block or delete cookies, please see our Privacy Policy. If you continue to use this site, you are consenting to our use of cookies.


Help to Buy

The Government introduced Help to Buy in 2013 to assist more first-timer buyers in purchasing their very first home. Those with a deposit as low as 5% can use the scheme to take their first step on the housing ladder. At present, the scheme only applies to brand new homes, meaning those buying a resale property do not benefit. As a housebuilder registered for the scheme, Kingerlee Homes is pleased to offer Help to Buy across its development portfolio.

Help to Buy has had a recent revamp. Revised rules were introduced on 1st April 2021 and the scheme will run in its current form until March 2023. A new aspect of the current Help to Buy initiative is a range of regional property price limits, ranging from £186,100 in the North East to £600,000 in London. 

How does Help to Buy work?

An eligible first-time buyer only needs a cash deposit of 5% to access Help to Buy. The rest of the purchase is made up of a bank or building society mortgage and a loan from the Government. A buyer can borrow up to 20% of the home’s value and although this loan needs repaying, it is interest-free for the first five years. When a 5% cash deposit and a Government loan are combined, a purchaser using Help to Buy would only need a 75% mortgage – a threshold that gives borrowers a greater choice of home loans at more favourable rates. 

When using Help to Buy, it’s worth remembering:

  •     Not every bank or building society is a Help to Buy mortgage lender
  •     Interest is due on the Government loan after 5 years
  •     How much you owe will rise and fall in line with your home’s value – it’s not a fixed figure
  •     The purchaser pays a £1 management fee every month until the loan is repaid
  •     You only repay the interest, not the equity, unless you overpay using ‘staircasing’ payments
  •     You only have to pay back the equity when you sell the property or when 25 years have passed, whichever comes first
  •     You can remortgage in the future and pay off the Government loan 

Eligibility & applications

A home buyer must be 18 years or older and live in England to qualify. Additionally, they must be a true first-time buyer in every sense of the word. A couple who both meet the criteria can apply jointly to use Help to Buy but if any of the following are applicable, the buyer will be excluded from the scheme:

  •     Owns a home or land anywhere in the world, now or in the past
  •     Has had any form of sharia mortgage finance
  •     Has owned a home bought with other people or inherited
  •     Has been married or in a cohabiting relationship, either now or on legal completion, with anyone who owns or has owned a home or land anywhere in the world
  •     Is buying or already owns a second home
  •     Is not intending to live in the property