Home Equity Loan ProgramHome-equity loan programme
Over 130,000 finishes have already taken place by individuals with the Equity Loan, which is helping individuals buy a new building with only 5% cash in. This new financing means that the Help to Buy Equity Loan could help 135,000 more to buy houses by 2021. As a result, the overall number of UK householders who have been assisted by the programme since its inception in 2013 would rise to around 360,000.
Approximately 81% of the residential property purchased under the equity loan was purchased by first-time purchasers, so that the overall number of first-time purchasers rose by 70% between 2010 and 2016. Chancellor Merkel has made it clear that buyer assistance must be reconciled with construction assistance in order to make living more accessible in the long run.
That means that we need to make sure that the right places are available to construct the houses we need. This equity loan program was established in April 2013 and the funds were pledged until 2021. Prospective home owners who use the program are subjected to the usual performance audits of the mortgages banks. In the first 5 years of the loan no interest or repayment is due.
The Equity Loan can be used to buy up to 600,000 worth of newly constructed real estate with a total equity loan of 120,000 (20%). Claimants in London can take out an equity loan of up to 40% of the total cost.
Equity Loan Program "Help to Buy" Progresses
Help to Buy Equity Loan has awakened people' imaginations with over 15,000 bookings for new buildings in the first 6 month. The Prime Minister and Chancellor today (8 October 2013) started the second part of Help to Buy, the mortgages bond, which will also be available on £600,000 or less of stock.
Kris Hopkins, Secretary of the Housing Department: Boasting over 15,000 new home bookings in 6 month, it's clear that the first part of our Help to Buy program, the Equity Loan, has awakened the public's appetite for new home ownership across the state. We have a functioning policy on housing: residential construction is increasing at its highest pace in 10 years, and the hard choices we have made to address the shortfall have kept interest levels low and are now offering genuine help to hard-working individuals.
I am pleased that we have started the second part of Help to Buy, the Hypothekengarantie, which will reinforce the action plan that has already done so much to rebuild trust in the real estate markets.