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The new Government help to buy scheme was introduced in April 2013 to help stimulate the housing market by providing loans of up to 20% of the purchase price on a new build home. We know that saving for an adequate deposit can be very hard for first time buyers in the current market so the loan will help to bridge the gap between what you can borrow from a mortgage lender and what you can afford as a deposit.

Key facts on the Help to Buy Scheme

  • The loans are available on new build properties only
  • It is open to both first time buyers and people who have a property to sell
  • It must be the person’s main residence. It cannot be a sublet or be a second home
  • You cannot keep your existing property and let it out
  • You must take out the standard first mortgage with a qualifying lender
  • There is no higher income threshold
  • The maximum purchase price is £600,000
  • The loan will be repaid on the sale of the property or after 25 years, whichever comes first. You can also make voluntary repayments

The Help to Buy Scheme Process Explained

Homebuyers can now consider whether to take advantage of the second phase of the Government's Help to Buy scheme, brought in three months early in a bid to help revive the property market.

Phase 2  is available to existing home-owners looking to move to any type of property, not just first-time buyers. The buyer must still put up at least a 5 per cent cash deposit, but the Government no longer lends actual cash to the buyer. Instead, it guarantees up to 15 per cent of the mortgage granted so that, if the borrower defaults and the property is repossessed and sold for less than the balance of the mortgage, the lender can apply directly to the Government for repayment under the guarantee.

The buyer needs to contribute a cash deposit of 5 per cent of the purchase price, and to satisfy the lender's usual checks. The aim is to reduce the risk to lenders so that they can offer cheaper interest rates to buyers. The lender pays the Government a fee for its guarantee.

The property must be worth less than £600,000, and borrowers must not own any buy-to-let properties or intend to keep the home they currently live in after the purchase.

Help to Buy Home Scheme Example

In an example where you purchase a £200,000 home under the help to buy scheme, the agency’s contribution of the equity loan totals £40,000 or 20% of the purchase price. You will be required to produce a 5% deposit of £10,000 and a mortgage of £150,000.

The equity loan is interest free for the first 5 years. After 5 years you pay a fee of 1.75% rising annually by the increase in the retail price index plus 1%. In year 6 on the previous example of £40,000 this would be approximately £58 a month.

Thank you for the brilliant five star customer service.

Mr D, Ipswich

The service I received was excellent.

Mrs B, Dronfield

 Dale was always responded to our questions quickly and professionally and made the process very easy. 

Mr & Mrs W, Chesterfield

Great service, very prompt, everything explained in detail. Thank you Josh and his team.

Mr & Mrs M, Mansfield

House moves are very stressful. First rate service. I was put at ease with everything and the way our move was handled. I would highly recomend Banner Jones.

Mr & Mrs B, Chesterfield

Josh dealt with our first house purchase in the most efficient, friendly and professional way. He was always willing to assist with any queries we had throughout the process, and nothing was too much trouble. He made us feel at ease during what is known to be a stressful process and one which was new to us and we would not hesitate to recommend Josh to friends and family. 

Mr H, Hasland, Chesterfield

I received excellent service for the purchase of my house

Mrs S,Sheffield

Excellent service again from Ben and Cheryl at the Mansfield office, would use again and definately recommend.

Mr N, Kingston Upon Thames

I want to thank Josh Butler for going above and beyond to make sure I was in my house by Christmas! Completion before 8 weeks is amazing at this time of year!

Miss S, Nottinghamshire

I would recommend Josh Butler at Banner Jones, Mansfield, and indeed I have done so already. He was brilliant, helpful, patient, knowledgeable and very competent. He did a great job.

Mrs D, Newark

Sandra went the extra mile to get us into our new home quickly. I can't thank her enough and would definitley use Sandra again, highly recommended.

Mr H & Mrs D, Chesterfield

Matt Maiden and Hollie Watkins have been really excellent in everything. Thank you.

Mr & Mrs, Lincolnshire

Following a hiccup or two with the estate agents, Banner Jones have been wonderful! Everything went like clockwork, all thanks to Cheryl and Ben.

Miss K, Mansfield

Everyone at Banner Jones have been helpful during our recent property move, particulary Gemma and Jenna. Thank you.

Mr & Mrs B, Chesterfield

Karen was very friendly, approachable and efficient. I would most definitely recommend.

Mrs M, Chesterfield

The receptionist staff on both days we visited your office were extremely friendly and the whole experience of dealing with Banner Jones was wonderful

T Howard

The service I received couldn't have been better!

Mrs C, Chesterfield

A BIG thank you to all at Banner Jones especially Katie , Carey and the team for the smooth process .

Looking forward to working together again in future.

Mr G, Newton Aycliff

Very efficient, friendly and professional. We would definitely recommend to friends and family. They made the whole experience problem free.

Mrs W, Mansfield

We’re really grateful for the work you did for us. 10 out of 10!

Mr & Mrs S, Bridlington

Brilliant service, kept well informed all the way through the process. Would definitely recommend.

Miss H, Nottinghamshire

Cannot fault the service, efficient, prompt and cautious. Matters explained very well and clearly. Pleasantly surprised.

Mr & Mrs D, Mansfield

Service provided was excellent. All the staff were very helpful, considerate and professional. I would highly recommend to friends and family.

Mr W, Nottinghamshire

Great, friendly service, we were able to contact whenever necessary.

Mr & Mrs Gwynne, Mansfield

Extremely efficient, professional and I wouldn't hesitate to recommend.

Mrs B, South Normanton

We were extremely happy with the quick, efficient way that our house purchase was handled by Karen Askew. Time was very important as we were in danger of losing the property if we had not completed the purchase within a few weeks. Thank you very much Karen,

Mr & Mrs C, Worksop

We just want to express our sincere thanks for the professional and efficient way in which you and your team have dealt with the conveyancing following the sale of my late Aunt's property.

Jessica and Jade were extremely helpful and professional also and it was a pleasure to know they were picking up the reins should you be otherwise engaged.

We would have no hesitation in using the services of Banner Jones on a future matter.

Mr & Mrs L, Derbyshire

The service was very quick and easy to follow. The staff were very helpful and friendly. Would recommend a friend or colleague to Banner Jones.

Mrs P, Chesterfield

Professional, helpful, caring and genuine. Nothing was ever too much trouble or to ask for.

Mr S, Heanor

Thank you for your most efficient service.

Mr & Mrs B, Devon

Thank you for your assistance with these two transactions. I am very happy with the level of support and assistance you've provided, and glad that I have chosen Banner Jones.

Mr S, Rotherham

Both Natalie and Stacey were very friendly and I had a professional service for both my house purchase and Will. The staff were very nice to talk to and helped me with every step if I was unsure what to do. Will highly recommend to friends and family.

Ms L, Chesterfield

Absolutley brilliant staff were helpful and friendly to me, Banner Jones staff have made buying our property as easy, with step by step feedback, even with the sale process. Thank you, very very much.

Mr & Mrs L, Nottinghamshire

The service given st the Dronfield branch was excellent. Staff were always friendly and helpful, nothing was ever too much trouble. We will definitely be using Banner Jones in the future.

A special mention to Catherine Wilson who helped us through a traumatic house move!

Mr & Mrs H, Sheffield

Banner Jones provided a very friendly service and we felt on equal terms with our representitive. Our queries were dealt with quickly and we got the home we wanted

Mr & Mrs G, Worksop

Kate and her team were very professional, knowledgeable, prompt and customer focused. The whole process was handled seamlessely and they were friendly  and helpful. We will definitely like to use Banner Jones and highly recommend to our friends and family.

Mr & Mrs K, Leicester

Banner Jones have helped me buy and sell my houses with great ease.

Miss Y, Mansfield

Thank you for dealing with the saleso efficiently and for your help with the mortgage discharge.

Mr & Mrs H, Chesterfield

Fantastic service from start to finish.

Mr & Mrs W, Dronfield

Thankyou to you and your team for dealing with our move.

Mr & Mrs S, Chesterfield

Kate Skelton was very helpful, knowledgable and confident in dealing withour residential conveyancing. She always put us at ease and explained everything to us during each step of the way.

Mr & Mrs P, Sheffield

Thanks Jessica, efficient and helpful as always!

3Sixty Financial Solutions

We have been very impressed with your help so far and therefore would like to use Banner Jones for both the sale of our current property and the purchase of our new property, based on the quotations we have received.

Mrs V, Dronfield

Holly, thank you so much for all your hard work to get us into our new house for Christmas!

Mr M & Ms M

The purchase went through very quickly and smoothly, and I was kept updated throughout the whole process. Highly recommended!

Mr B & Miss W, Chesterfield

The whole buying & selling process was really smooth. Everyone says that buying & selling a house is very stressfull but you made it all stress free and we would have no hesitation in recommending you to anyone. Thanks again.

Mr & Mrs H

Kate Skelton and her team are excellent, friendly and such helpful staff.

Mr H, Chesterfield

Fantastic service by Gemma Sharpe-Buckley at the Chesterfield branch. Always responded ASAP to every email, I sent several with lots of questions and I was always provided with clear answers to help me. 100% would recommend,

Mr & Mrs K, Chesterfield

I couldn't be happier with the service from Sally and her team at the Dronfield branch. Thank you.

Mrs R, Dronfield

Frequently Asked Questions

At what point in the process is it legally binding?

You can withdraw from a sale or purchase up until the point contracts have been exchanged. Any deposits paid after exchange of contract will then by non-refundable. After contracts are exchanged you are then responsible for the property you are buying and should arrange suitable insurance from this date.

How long are local searches valid for?

A local authority search completed for a house purchase is valid for 3 months.

How long does the conveyancing process take on average?

We usually say 4-6 weeks for an average sale or purchase. Queries and concerns can often come out of the local authority searches which need further investigation and sometimes this leads to re-approval from the Mortgage lender. This can add further time into the process.

What happens if we can’t produce certificates for work we’ve had done on the house we’re selling?

You can indemnify the work by taking out an insurance policy. This means that you can not be held liable for any future fault on the work that was done. We can arrange this for you

What is Stamp Duty and how much will I have to pay?

Stamp Duty is a tax levied by HM Government on a transfer of property. For residential property this tax is calculated at 1% for property values between £125,001 and £250,000, 3% for values between £250,001 and £500,000 and 4% for those of £500,001 and over. Duty may also be chargeable on any rental charge (leases only) - this affects both residential and commercial leases where different thresholds are applied.

What is the difference between Joint Tenants and Tenants in Common?

Tenants is Common is where two or more people are entitled to the proceeds of sale in distinct shares - on the death of one, his/her interest will not pass to the survivor(s) but will be part of his/her estate. Joint Tenants are on the other hand 50/50 Co-owners of land - when one of them dies, his/her rights of ownership pass to the survivor(s).

How to Buy a Help to Buy Home

Stage 1 - Application

An application needs to be made to the local help to buy agent. The application includes a Property Information Form which shows details of the proposed purchase, main mortgage, deposit and household income. The Property Information Form also confirms your agreement to the funds due being paid directly to the house builder.

You will need to sign the Property Information Form with a copy of the Builders Reservation Form which must be sent to the local home buyer agent.

Authority to proceed

The local home buyer agent assesses the application and if passed they will issue an authority to proceed. This is valid for 3 months and exchange of contracts must take place within this period.

 Stage 2 - Exchange of Contracts

You will need to go through the normal conveyancing process with regard to the property but you will also need legal support with the signing of the help to buy equity loan agreement.  Banner Jones can help you with this.

We will need to check that the mortgage offer, property price and available funds are consistent with the authority to proceed and request permission to exchange contracts from the local home buyer agents.

An approval is received before contracts can be exchanged.

Stage 3 - Completion

  • The agents pay the funds direct to the developer.
  • We return confirmation of the sale to the local home buyer agent who will then register the details with the post sale home buyer agent.
  • We deal with the registration of the second charge. ie, the loan

Sale of the Property

Consent from the post sale home buyer agent is required and the agencies mortgage will only be released with their permission. Their main concern is that the sale of the property is at the correct market value and they can request an independent valuation to ensure this.

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