Help to Buy calculator. LISAs can be transferred from one provider to another, allowing you to chase the best rates and you are allowed to contribute to both a LISA and Cash ISA in the same year. Simply enter the relevant details into the calculator below and your monthly repayments will be calculated for you. An outline of the Homes England’s policy towards ensuring long term sustainability of equity loans. The Help to Buy regional price caps will be: To qualify for the current scheme, purchases must reach completion before 31 March 2021. Scotland, Wales, and Northern Ireland have their own schemes. The terms of the Help to Buy scheme varies dependent on where you live. So, if you sold that £400,000 London property for £450,000, and you had taken the full 40% equity loan (£160,000), you would have to repay the government £180,000. ; The Government lends you up to 20% of the value of the property. The terms of Help to Buy vary slightly between England, London, Scotland and Wales, so take a look at the different schemes below. With Help to Buy, you could buy a brand-new home sooner than you think. Every year after that, it increases in line with inflation plus 1%. If you do not sell the property before then, you'll end up repaying your mortgage plus the loan at the same time. Find out more about the Help to Buy schemes, including shared ownership, Help to Buy ISA and Lifetime ISA in our Help to Buy guide. You'd need to pay off your mortgage with your share of the money. You can get the equity loan on Help to Buy properties with a maximum value of: Combining the maximum equity loan percentage with the maximum property value in the different UK locations, the biggest loans you could get are: On a £400,000 property in London, you’d need to save a minimum £20,000 deposit (5% of the property’s value). You then need a mortgage lender to loan you £47,500 for the rest of your 25% share. While this might sound great, remember - you will need to pay the equity loan back. Up until that point, the sale is not considered confirmed. There are also similar shared ownership schemes for people with long-term disabilities and people aged 55 and over. The … Use this helpful calculator to provide a guide for help to buy equity loans that may be available, and the amount of mortgage that you would require based on the purchase price of the property, and the deposit that you can afford to put down. Equity loans are part of the government’s Help to Buy scheme. To get that much mortgage, you'd need a total annual income of about: Mortgage lenders usually multiply your salary by a maximum of 5 times to decide how much they will lend you. If you are looking to buy a property in London then the London Help to Buy scheme could help you to move sooner than you think. To find out more information visit helptobuy.gov.uk. Use the Help to Buy calculator below to illustrate an example of what the monthly costs when buying a property with a Help to Buy Equity Loan. The remaining 55% of the property price is covered by a residential mortgage. Our registered address is The Cooperage, 5 Copper Row, London, SE1 2LH. MIN. The 4 main Help to Buy mortgage schemes are: A Help to Buy equity loan is a loan from the government which helps you to purchase a new-build property, giving you access to an interest-free loan for the first 5 years. You will not be able to use the Help to Buy scheme if the purchase price of the property is more than £600,000 or the property is not being used as your sole private residence. Between April 2021 and March 2023, a new version of the scheme will be available. Use our Help to Buy equity loan calculator to find out what you could afford, See how much you can borrow with our mortgage calculator, See how to organise your finances to help you buy your first home. This file may not be suitable for users of assistive technology. How much the government will lend you depends on where the property is: For example, if you're buying a property in London, the Help to Buy scheme would allow you access to a government loan of up to 40% of the value of the property. The Government Help To Buy scheme provides you with an interest-free loan for five years equivalent to up to 20% (or 40% in London) of the purchase price. After that, the rate increases each year by the retail price index (RPI) measure of inflation, plus 1%. All rights reserved. However, on 5 May 2020, the Treasury announced that LISA holders who need to withdraw funds early will be charged 20% until April 2021. There are regional-specific versions of the Help to Buy equity loan, including: The Shared Ownership scheme allows you to buy between 25% and 75% of an ex-council or new-build property. For example: a 25% share of a £200,000 property is £50,000. 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