Help to Buy Bromford equity loans
We don't currently have any homes available to buy
through the equity loan scheme.
If you want to buy a new-build home but are struggling to get a
large deposit together you might want to consider a Help to Buy
Bromford equity loan.
Bromford equity loans are available to first-time buyers who are
looking to buy a new-build property. The scheme is only available
to you if you are buying the home as a place to live and as such,
you won't be able to rent out the property.
You will need a minimum 5 per cent deposit and Bromford Homes
will lend you 20 per cent of the property's value. This is the
equity loan. You will then need to take out a mortgage for the
remaining amount of the purchase price.
The Bromford equity loan is interest-free for the first five
years but interest on the loan is payable after this time. This fee
starts at 1.75 per cent of the loan and will rise every year by any
increase in the Retail Prices Index plus 1 per cent.
In a nutshell:
With a Bromford equity
- You'll need to contribute at least 5% of the property
price as a deposit.
- Bromford Homes will give you a loan for 20% of the
- You'll need a mortgage of up to 75% to cover the
For example if you're buying property
5% deposit =
20% equity loan = £30,000
75% mortgage = £112,500
You can pay back all or part of the loan at any time from the
day of completion of your sale but it will need to be repaid in
full after 25 years from the date of purchase or when you sell your
home - whichever comes first.
You may choose to re-mortgage and incorporate some of the loan
each time or you can clear it when you sell the property. You
cannot pass the loan onto your new purchaser.
The amount that you will have to pay back will depend on the
market value of the property at that time - not the value of the
property when initially bought.
For example, if the market value of
At the time of buying is
- Amount of equity loan
borrowed would be £30,000 = 20% of market value
- When paying back the loan is
- Amount you would pay back
would be £40,000 = 20% of current value
As with everything of a financial nature we recommend that you
seek independent financial advice.You can pay back all or part of
your loan at any time and the way that the scheme works means that
you could end up paying back more or less than you borrowed
depending on whether your home rises or falls in value.
To find out more please call us on 0800 0852
First-time buyers Dan and Kate
explain how equity loan unlocked their property
We don't have any homes available to buy with Help to
Buy Equity Loan at the moment. Please register your interest if you'd like us to let
you know when we do.