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Our guide to the Help to Buy Scheme

Red Brick House and Gas Lamp

If you’re any way involved in the property market then you’ll have almost certainly heard of the government’s new Help to Buy scheme. The coalition government has introduced the scheme to stimulate the housing market and help first-time buyers get on the property ladder.

Through the Help to Buy Scheme, the government will lend buyers 20% of the value of their new home. The buyer will have to then contribute 5% of the value towards the deposit and find a mortgage that will cover the rest, (75%) of the value of the house.

The 20% government loan is interest free for the first 5 years of home ownership. After that period a fee of 1.75% of the home’s value is placed on the loan. This increases by 1% each year.

This means that to buy a house for £200,000, through the Help to Buy Scheme, a buyer would need to produce £10,000 in savings to meet 5% of the value required. The government would then lend them £40,000, (20% of the total house value) and they would need to find a mortgage of £145,00 to cover the rest.

The Help to Buy scheme can be used to purchase a house up to the value of £600,000 and can only be used on a house that is to be lived in by the buyer and not sub let to someone else. Many high street banks, including Natwest and Lloyds, are offering mortgages to buyers who’re using the Help to Buy Scheme.

As well as making it easier for first time buyers to get on the housing ladder, the scheme also aims to inject life into the housing market. If more people are buying houses at the bottom of the ladder, then the people further up the ladder will be able to buy and sell their properties as well.

We think the scheme is a great idea for helping more people get on the housing ladder. From a removals company’s point of view this is great news, because our services are likely to be in greater demand.

If you’re thinking about buying your first property through the Help to Buy Scheme we can assist with your move. Regardless of whether you’re moving into a one-bedroom flat or a country mansion, we can move all your stuff for you. Our removals team at Harrison and Rowley are trained to handle jobs of all sizes. If you’re thinking about moving please get in touch.

Update: The Help to Buy scheme was expanded as part of the Chancellor’s 2015 Autumn Statement to include relaxed rules around shared ownership and a boost to prospective home owners looking to buy a property in London.


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