program help to buy

Buying a house in England for the first time is a major financial challenge for most people and usually requires taking out a mortgage for the purpose. If you don’t meet all the conditions to receive it, as a first time buyer you can take advantage of the government’s Help to Buy scheme to help you finance your investment. Find out what it is and who it is for.

What are Help to Buy home buying programs?

Let’s start by explaining what Help to Buy is. This is what special government schemes are called to help UK residents buy property. It involves a concessionary loan to cover part of the shortfall in the deposit required for a mortgage.

Help to Buy scheme was first launched in 2013 and was initially aimed solely at first time buyers, those buying their first house or flat in England. Nowadays, people who want to move to a new property can also take advantage of it.

How does the Help to Buy Equity Loan scheme work?

As we mentioned above, under Help to Buy you can get a soft loan from the government (Equity Loan) to buy a property at 20% of its value (or 40% if you are buying a house or flat in London). It is granted for up to 25 years and has no interest at all for the first 5 years. Only from the sixth year onwards interest is charged, but at a symbolic rate. With this arrangement, you can take out a lower mortgage. However, you should have the funds for at least a minimum contribution of 5%.

The loan is repaid over a similar period as the mortgage or must be repaid when the house is sold. However, it is worth noting that the amount to be refunded is calculated according to the current value of the property.

Who can benefit from such financial support?

Financial support under the Help to Buy scheme is available to UK residents, including Polish people living there permanently. You don’t have to meet high standards. However, the assistance is mainly aimed at people buying their first property in the UK and who do not own any house or flat – either in England or elsewhere.

support for firt time buyers in uk

Czy warto zdecydować się na rządowy program?

Are you wondering if Help to Buy is worth it? The scheme has many advantages, but it is not without disadvantages. Its advantages include, first of all, the possibility of buying a house in England with a minimal own contribution and at lower borrowing costs. With a low-interest loan, you can take out a smaller commitment from a bank and pay much lower instalments than you would under standard terms.

The disadvantage of the scheme is that you can only use it when buying your first property. What is more, if after a few years the beneficiary of the scheme wants to buy another house or a flat, he will be forced to return the government loan in full. It is also important to note that Help to Buy can only purchase a new house from a participating developer. So it is not possible to take a loan to buy a secondary market property. What’s more, the value of the house you buy cannot exceed £600k. This is quite a limitation that greatly narrows the choice of properties to buy.

With house prices on the rise, repaying the loan can also prove problematic as it must be repaid at 20% calculated on the current value of the property. This is why many beneficiaries of the scheme want to get rid of this ballast as soon as possible. This is possible after 5 years of mortgage repayment, e. g. during the remortgage process – then you can increase the amount of the loan and, consequently, the instalments, so that from now on you only pay the obligation to the bank, the amount of which does not depend on property prices.

Make sure you are creditworthy!

If you are interested in buying a house in England and intend to purchase a property for the first time, prepare well for such a transaction. The good news is that mortgages in the UK are available even to those on lower incomes, if only through the existence of schemes such as Help to Buy. In each case, however, taking out such a loan requires having own contribution (in the amount of at least 5% of the property value) and sufficient creditworthiness. You can easily estimate your financial capacity to take on debt using a free creditworthiness calculator. If the result of the calculation is unsatisfactory, it is worth taking an interest in the government support scheme.

Let us help you choose the best path to your own property!

Our specialists can help you find the best way to finance your property purchase in the UK. Contact us with your needs and we will advise you which solution will be the most beneficial for you. We’ll find you a cheap mortgage, and if necessary – we’ll also help you apply for government support under Help to Buy to make it easier for you to commit. Use the services of a Polish broker and you will easily make your dream about a house in the UK come true!


Małgorzata Kniaź - Supreme Financial Solutions LTD

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