Help to Buy
Buying a Redsky Home
Buying a new home is a big decision. Usually the biggest financial decision most of us make in our lives, so it is worth taking the time to find a buying method that suits your own financial situation best.
With just a 5% deposit you can secure the home you would like to buy. There are presently two schemes which can help you book your own home: “Equity Loan” and “Mortgage Guarantee."
What is Equity Loan Scheme?
Under the Equity Loan scheme the government lends up to 20% of the property value in England, Scotland and Wales, which can either be paid during the loan term, or on the sale of the house. This is available on newly built homes up to £ 600,000 in England.
In England no loan fee is charged for the first 5 years of owning the property. The remaining 75% of the property can be either secured from a bank or any other financial institution.
What is Mortgage Guarantee?
The Mortgage Guarantee scheme is available on new build homes as well as existing homes up to a limit of £ 600,000. Under this scheme up to 95% mortgage is secured from a mortgage lender and the lender can offer the loan to value since the government provides a guarantee of about 15% of the property value. For further information on Equity Loan or Mortgage Guarantee visit: