All you need to know about the help to build scheme:

Is building your own home a dream of yours? Inspired by Grand designs and ready to create your dream home?

Finally, the chance to create your own self build masterpiece is finally here.

With the success of the help to buy supporting many in obtaining their first homes, the government has recently revealed the new Help to build scheme. The scheme has only recently been signed off as of Friday 26th November 2021, the help to build scheme outlining the details. With a huge cash injection of £150 million the scheme aims to make it a more affordable and straight forward process to build your own home.

Opening the door to creating a home of your dreams and giving a huge boost to local communities to have a greater say over the area and what they want to see it look like.

 

The help to build scheme is aiming to make it a more obtainable option to get on the property ladder with lower mortgage deposits. By doing this it should allow people more capital to use in order to get the project started whatever route you decide to go.

 

Help to build scheme:

The scheme aims to enable people to get a self-build mortgage with deposits as low as 5% in contrast to the usual 20%, which for many reduces the chance of being able to get onto the property ladder. You would need to start the process with the deposit and get the mortgage from a lender registered with the help to build scheme.

The equity loan is based upon costs estimated from the land price and costs associated with building the home, not based upon the original amount borrowed, the loan can be from 5% to 20%, excluding London where it can be up to 40%. You can apply for the equity loan that can be used towards the costs of the land and build costs and have then 3 years to get the build completed. No interest will be paid on the equity loan within the first 5 years with interest being paid from year 6.  The additional funds are to be provided by the mortgage lender. The total eligible customers can spend on land and building is £600,000 with the most being able to be spent on the build being £400,000 even if land is already owned.

When the build is complete the mortgage lender will receive the payment for the equity loan and your self- build mortgage will be changed to a repayment mortgage.

The scheme doesn’t reduce costs such as building costs and land prices. To be eligible for the scheme you would be over the age of 18 and have the rights to live in England, live in the new home you create and securing the self to build mortgage. Additionally, the home needs to be a new build property or either owner occupied or a tenant. The building can be demolished in full allowing a custom new property to be self-built in its place.

 

Through this the government are hoping to increase the self-build market by 30,000- 40,000 annually and in turn help the demand in the housing market.

You can build the house you want in your desired location creating it for the life you live and creating it to meet now and future needs without breaking the bank. Are you ready to take the plunge to create the home you’ve always dreamed of?

At any stage of the process, we are able to help, from starting the process to the end we can assist and be there to answer any of your questions.

 

If you need additional support regarding this, get in touch with one of our advisors by calling: 01225 962456