Improve your move

Help to Buy

You can buy your new property on a Mears New Homes development with assistance from Homes England in the form of an equity loan, making a new build home available for everyone. 
The Help to Buy: Equity Loan offers a government funded loan of up to 20% of the cost of your newly built house, so you’ll only need a 5% cash deposit and a 75% mortgage to fund your purchase. You won’t be charged loan fees by the government on the 20% loan for the first five years of owning your home. 

How it works:

1.    Choose your participating property with Mears Mew Homes and pay your reservation fee
2.    Complete the application using the Help to Buy property information form and declaration
3.    You will have authority to proceed with Help to Buy once the application is approved
4.    We can help you choose a solicitor and IFA (Independent Financial Advisor) to apply for your mortgage 
5.    You will receive a mortgage offer and exchange contracts, which means that you are now legally contracted to complete the purchase by an agreed date.
6.    Once funds have been transferred from Homes England and your mortgage lender, you may complete and move into your new home.  

Benefits: 

o    Smaller deposit required so you needn’t spend as long to save 
o    Smaller outgoing for the first 5 years due to no repayments on the government 20% loan
o    If the value of your property falls, you pay less back to Homes England
o    Available to everyone, not just first time buyers (although you must have sold your existing property before applying for a Help to Buy loan.)
o    If you are borrowing less from a mortgage lender, you are more likely to qualify for the loan


FAQs:

Who can apply?
Anyone can apply subject to qualifying conditions. The property purchased must be your only residence and Help to Buy is not available to assist buy-to-let investors or those who will own any property other than their Help to Buy property after completing their purchase.

Can this be used on any home? 
The scheme is only available on properties that are on the market for under £600,000 and only on selected plots in our developments. The availability and loan on offer varies for properties in London.

How long does it take?
After submitting your Help to Buy application, Your Local Help to Buy Agent will seek to assess your affordability within four working days and the authority to proceed provided will be valid for three months. You must legally complete on your purchase within six months of exchanging contracts.

How do I repay it?
The equity loan must be repaid after 25 years, or earlier if you sell your home. The amount you repay is determined by the future sale and may not be the same as the original equity loan price. An initial monthly management fee of £1 is payable by direct debit from the start of Homes England loan until it is repaid. After the first five years you will pay an additional fee as interest of 1.75%, rising annually by the increase (if any) in the Retail Price Index (RPI) plus 1%.

What if I want to sell my home?
When you sell your home you will need repay the equity loan at the same time. If you initially purchased with a 75% mortgage and a 5% cash deposit, you will repay Homes England 20% of the value at the time you sell.

What if my property value falls?
The Help to Buy: Equity Loan commits you to repay up to 20% of the market value of your home at the time of sale, meaning that you may pay back less than the original Homes England contribution if the market value of your property falls below the purchased value. 

*This scheme is available on selected plots only and terms and conditions apply. For more information, please book an appointment with our sales advisors who will be able to talk you through the process. Full details about the scheme can be found at www.helptobuy.gov.uk