Harborough a haven for Help To Buy first time buyers
New research has shown that the Harborough district has become a magnet for those using Government’s Help To Buy equity loan scheme, a program that helps to get first time buyers onto the property market.
Since the scheme began in 2013, 604 houses in Harborough have been brought using the Help To Buy equity, more than any other district in the county. With 5,177 purchases made in Leicestershire, the county also has more than any other in the East Midlands region.
Harborough is now a popular place for the scheme to help buyers acquire a property, possibly because the district is an area with higher house prices than surrounding areas. As such, the higher prices in the district are encouraging first time buyers to look for assistance in saving a deposit and in particular, Help To Buy.
What is Help to Buy equity loan?
With a Help to Buy: Equity Loan the Government lends first time buyers up to 20% of the cost of a newly built home. Those using the scheme only need a 5% cash deposit and a 75% mortgage to make up the rest. There is no interest or fees on the government’s equity loan for the first five years but in the sixth year, an interest fee of 1.75% is charged.
The scheme helps in the process of getting together a deposit and is frequently used in Harborough as deposits are larger than surrounding areas. The popularity of the Help To Buy scheme is reinforced by the fact that the Help To Buy ISA, a separate scheme, wasn’t taken into consideration in the research.
The Help To Buy ISA also helps first time buyers to save up a deposit. Using the ISA, the Government contributes 25% of the total saved. For every £200, a government bonus of £50 is received. The maximum government bonus you can receive is £3,000.
First time buyer advice Market Harborough
When you have amassed a large-enough deposit, our Market Harborough estate agent has plenty of properties in the Harborough district suitable for a first-time buyer. e don’t pretend to understand the whole of the UK’s property market – but with over 10 years’ experience working in Market Harborough, we do about the town and the surrounding area because that’s where we direct all of our time.
For advice about a move or just information about moving to Market Harborough, get in touch today by calling 01858 450 020.