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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 loan:

  • 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 price.
  • You'll need a mortgage of up to 75% to cover the rest.

For example if you're buying property worth £150,000

5% deposit = £7,500
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 your home:

At the time of buying is £150,000

  • Amount of equity loan borrowed would be £30,000 = 20% of market value
  • When paying back the loan is £200,000
  • 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 499


First-time buyers Dan and Kate explain how equity loan unlocked their property dreams

Dan&family 960doorstep

 

 

 

 

 

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.