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Buy a Home with Help to Buy Loans

Since the worlds economic lanscape changed dramatically in 2008, many UK people have been unable to access a viable option to purchase a home for their family. This is a huge problem and it is one that gets bigger each year that passes as more and more individuals need a home. Help to Buy loans can offer those people a means to own a home that they otherwise could not afford.

Help to Buy Loans Explained

The UK governent has created Help to Buy equity loans as a means to help those people looking to secure themselves a home. After a highly successful first phase, recently a second phase was announced which improved the terms for home seekers considerably. Now, both those of you looking to buy a home as well as first time buyers can now avail of these loans up to the value of £600,000.

To get in on these loans you need to provide at least 5% of the house price as a deposit yourself. The British government will then provide an equity loan of up to 20% of the price of the property meaning that you will no longer have trouble securing a mortgage for the remainder of the house price through traditional means.

The best part of these Help to Buy equity loans is that you will be exempt from interest repayments for the first 5 years that you own the house. Then, starting in the 6th year, you will begin to be charged 1.75% of the loan’s value with this percentage increasing steadily in increments. These 5 years will provide much needed breathing room after settling into your new home.

Help to Buy Loans Success

So far, the Help to Buy equity loans scheme has been a raging success with more than 15,000 reservations to build new houses in the first 6 months of the scheme. With the announcement of Phase 2 of the Help to Buy loans scheme expect even more UK citizens to avail of the scheme.

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