This spring marked four years of the government’s much-vaunted Help to Buy Equity Loan scheme. By the end of 2016 it had already helped over 112,000 home purchasers make 
their next move with loans totalling £5.34bn. [i]
The support it has offered to tens of thousands of first time buyers is often a talking point, but it is worth noting another figure that is often overlooked. Before 2016 was out, the scheme had also helped 21,614 existing homeowners to make their next move – almost 20% of the total number who had used it. [ii]
Alison Taylor-Shaw, Sales Director Designate for Harron Homes North Midlands, explains: “There is an abundance of advice, help and guidance available to first-time buyers on taking that first step onto the property ladder, and the importance of helping them make that step often dominates the conversation when it comes to Help to Buy and other similar schemes. As a result, there is a misconception that the help and financial support is only there for those buyers.
“We recognise that couples and families who have outgrown their first or second home and are looking for a hand in making that next step also deserve and require support. The government recognises that too, which is why the Help to Buy Equity Loan scheme is open to existing home owners as well.”
The premise of the scheme is easy to understand – it is open to buyers looking to purchase a property worth £600,000 or under, with a deposit of at least 5% on their chosen property. They can claim up to 20% of the property’s value in the form of an Equity Loan, with no fees interest-free for the first five years. Once the loan reaches the sixth year, interest is payable at 1.75%, and then rises in line with inflation.
Among those to have benefitted from a Help to Buy Equity Loan are Karim (28) and Kelly (25), who purchased a property at Harron Homes’ Heatherfields development near Doncaster. “It was all so much easier than we thought,” says Karim. “Harron Homes helped drive the paperwork along for us, keeping us up to date with progress”.
There are some caveats on eligibility for the scheme – homes purchased with a Help to Buy Equity Loan must be the purchasers’ solitary home, and must not be rented out. It is also available only to customers seeking a repayment mortgage, rather than an interest-only mortgage.
Crucially, though, there is no stipulation that those using the scheme must be first-time buyers, and as such, the scheme offers an important lifeline to those ready to make their next move, but unable to commit to a mortgage above 75% on a larger property.
Alison adds: “We have a fantastic range of homes perfect for growing families at our developments across the Midlands, offering the additional space and comforts that second-steppers tend to be looking for, along with the extra touches of luxury that are Harron Homes’ signature.
“Our friendly on-site Sales Executives are always delighted to help those looking to sell a home they’ve outgrown and find a home they can feel contented in for years to come. There are numerous ways we can help, from expert advice on the Help to Buy scheme, to additional purchasing assistance such as our tailored incentive packages and our full value part exchange scheme.
“If you’re in this position and struggling to see the way forward, don’t despair – come to your nearest Harron Homes development and have a chat with us. The solution may be a lot simpler than you think.”
Find out more about the Help to Buy Equity Loan scheme by visiting http://www.harronhomes.com/purchasing-assistance/help-to-buy/.
[i]https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/604273/HTB_EL_and_HTB_NewBuy_statistical_release.pdf
[ii]https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/604273/HTB_EL_and_HTB_NewBuy_statistical_release.pdf