Help to Buy Scheme

UPDATE: The Help to Buy Equity Loan Scheme is closing to new applicants on the 31st October 2022. This is to ensure that you have legally completed on your purchase by the 31st March 2023 when the scheme comes to an end. For more information click here

The Help to Buy Scheme is a Government initiative offered on new build properties, as a way to help you with your purchase. Since the scheme started in 2013 it has been changed several times and in April 2021 a new scheme was launched. The latest scheme changes how it operates and who is eligible.

By using the Help to Buy scheme, you are able to secure and purchase a property on the site with only a 5% cash deposit. The Government then lends you up to 20% of the purchase price, with the remaining 75% being covered by a standard mortgage.

The loan from the Government is interest-free for the first 5 years, and will need to be re-paid either within 25 years, at the end of your mortgage agreement, or when you sell your home – whichever comes first.

To qualify for the latest Help to Buy scheme, you must be a first-time buyer, as must anyone else you may be buying alongside with, and the purchase price of the property must be under the ‘price cap’ set by the Government in your area. The caps for the local area are as follows:

Yorkshire & The Humber – £228,100

East Midlands – £261,900

West Midlands – £255,600

At Banner Jones, we have a wealth of experience dealing with conveyancing under the Help to Buy scheme. We explain the entire process in a straightforward and uncomplicated manner. For a free, no obligation quote call 0330 017 6309

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You need a 5% deposit to qualify. The government will provide you with a 20% deposit that is interest-free for the first five years. However, after five years you will pay a monthly administration fee.

The equity loan from the government must be paid off in full, by one of the following terms whichever happens first:

After 25 years
At the end of your mortgage agreement
When you sell your home

On an equity loan, you will always pay the same level of interest rate. However:

If your property increases in value, you will pay more money back.
If the property loses value, you will pay less back than you borrowed.

For more information on the help to buy scheme, contact our team of specialists in Chesterfield, Dronfield, Mansfield and Sheffield on 0330 017 6303

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.

Great service from start to finish. Josh kept us updated throughout the process and was always very prompt with responses. Highly recommended.
Mr & Mrs B, Mansfield

Josh was excellent and would definitely use his services again.

We were always helped with all questions and he was friendly and approachable.
Mr B & Miss C, Mansfield

Great service, very prompt, everything explained in detail. Thank you Josh and his team.
Mr & Mrs M, Mansfield

Hollie was really great! What a great team, thank you very much!
Mr & Mrs H, Mansfield

Dale was very competent and thorough. I believe he worked hard to act in our best interests and he was very punctual with email replies.

Mr & Mrs B, Leeds

I received excellent service for the purchase of my house
Mrs S,Sheffield

Thanks very much Jenna. I have been very happy with Banner Jones's help in the sale of my home. Please pass on my thanks to Gemma. Best wishes.
Mr W, Derbyshire

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

Holly

Many thanks for all your help in making the sale /purchase of the above properties such a thoroughly smooth, stress free journey.

We can highly recommend your company .
Mr & Mrs C, Hockley

The staff (Cheryl & Ben) were both extremely helpful making our whole moving experience much easier.

Thank you to you both. We could certainly use Banner Jones again in the future.
Mr & Mrs K, Mansfield

Hollie was excellent. They responded to all our enquires straight away and explained everything in great detail. Banner Jones offer a friendly and reliable service.
Mr & Mrs J, Isle of Wight

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

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

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

Everyone at Banner Jones have been helpful during our recent property move, Thank you.
Mr & Mrs B, Chesterfield

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

House Sale & Purchase

Excellent Service
Mr P, Chesterfield

Thank you for working so quickly and efficiently on our case. Everything has gone so smoothly and stress free because of you and we are very grateful.
Miss E & Mr M, Chesterfield

Thank you for my Dad's house sale. We were really impressed with the service you gave. The whole process was fast, we never had to chase and you kept us up to date with everything very quickly.
Mrs B, Matlock

I just wanted to say, thank you so much for all your help and patience with me over the last few months. It took a long time to get there with the mortgage but you helped me out so much to get it pushed through quickly at the end! I would certainly recommend you to any of my friends who want to buy a house in the future. You have done a fantastic job, thank you :-)
Miss W, Chesterfield

Great friendly service as usual
Mr & Mrs H, Mansfield

Excellent communication throughout our conveyancing process. Thank you.
Mr & Mrs B, Chesterfield

I would like to thank yourself and Claire for all your help, patience and understanding throuhgout the conveyancing process of our late father's property
Mr N, Dronfield

Dale and the whole team at Banner Jones were fantastic. Very knowledgeable and friendly. It was a pleasure to deal with such professionalism and positive attitude.
Mr & Miss, Chesterfield

Used Banner Jones twice now to move house, and have found them to be excellent in every aspect. Would highly recommend.
Mr & Mrs C, Grassmoor

Excellent, speedy, friendly service. Assisted with all my queries and very helpful regarding issues caused by the bank holding the money.
Mrs S, Chesterfield

Will always use Banner Jones for their personal approach, friendliness, expertise and to give you satisfaction
Mrs T, Chesterfield

House sale was completed without any problems and very professional.
Mr & Mrs S, Old Whittington

Banner Jones was friendly, helpful, efficient and considerate. My cousin recommended them to me and I will not hesitate to use any of the services they offer when the need arises.
Mrs M, Whittington

Buying a House

Good service.
Mr & Mrs W, Danesmoor

Everything went smoothly, no trouble at all. Thank you.
Mrs H, Mansfield

The service I received couldn't have been better!
Mrs C, Chesterfield

Lovely thanks for the effortless sale

Mr S, Sutton in Ashfield

Karen Askew and Nathan Rodgers did a fantastic job for us. Professional advice, speedy service and competitive pricing. Very happy.
Mr G, Derby

The service was excellent. We were particularly impressed by the swift responses and communication by email. A far superior service than our previous moving experience.
Mr P, Eastbourne

We’re really grateful for the work you did for us. 10 out of 10!
Mr & Mrs S, Bridlington

Very easy to make appointments, very personal service from all people at Banner Jones, my solicitor was very friendly and put me at ease. If I needed a solicitor again, Banner Jones would be the first on my list.
Mr C, Dronfield

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

We would like to thank you for the help and advice that you gave us, pushing us in the right direction and staying on top of all that happened from July 16 through to completion on the 20 Apr 17. You were a tremendous support and we are grateful for you helping us to reach completion with the minimum of fuss. Thank you!

Mr & Mrs A, Chesterfield

Just wanted to say thank you for all your help, you have been very helpful and easy to deal with.

So once again thank you very much for all your work.

Mr B, Chesterfield

Excellent service from Josh. Thank you for all of your help.
Miss T, Nottingham

I would like to thank you both of you for your excellent service.
Mr U, Essex

Thank you very much for all your assistance and hard work and can you please pass on my thanks to Steve also.

It's been a pleasure working with you both on these past two projects.
Mr C, Chesterfield

Alison Howard is always great - Very professional, very efficient and always responds to queries promptly.

Stacey Lee-Davenport is also excellent - They both appear to work very well together! Fantastic service from them both.
Mrs M, Sheffield

Our solicitor was very helpfull and dealt with our house purchase very efficiently. Very friendly and approachable staff.
Mr H, Nottingham

Extremely efficient, professional and I wouldn't hesitate to recommend.
Mrs B, South Normanton

All interactions with Banner Jones staff have been very friendly and efficient.
Mr J, Chesterfield

Thanks so much for being there for us. You've worked so hard to make it all go smoothly. We can't thank you enough

Mrs H, Sheffield

Thanks for all your help!
Mr & Mrs G, Chesterfield

We have now settled into our new gouse. All thanks to Stacey and her team, everything was quick and faultless.

Alison is great, nothing too much trouble. My wife and I would definitley recommend Stacey and the team - Excellent!
Mr & Mrs H, Chesterfield

Very happy with the service given, prompt replies and very friendly.
Mr & Mrs E, Nottinghamshire

I thought overall the service was very good, Carey has acted for me previously and has always been available if I needed to discuss any matters.
Mr S, Dronfield

There was absolutley nothing to improve! Katie & Carey were splendid!
Mr Y & Ms R, Sheffield

Thank your for all of your help and hard work!
Miss S, Derbyshire

We have dealt with Banner Jones extensively over the past 18 moths, and found them very professional, friendly and efficient in allservices we have dealt with. We have recommended Banner Jones and will continue to do so.
Mr H, Chesterfield

Our thanks to Mark and yourself - House buying is inevitably full of stress but it’s made easier when your solicitors manage to combine professionalism with being friendly and approachable. It is much appreciated.
Mr W & Ms L, Salford

Thank you for all your help with regards to the sale and purchase. Much appreciated and highly recommended. We'll prob be in touch soon as we need to make a will.
Mr & Mrs B, Chesterfield

Recieved excellent service. Great comunication from Laura, I would definitely recommend this company!
Mr B, Nottingham

Hollie, you've made me an incredibly happy lady! Thank you so much for all you support, I appreciate your time and for keeping me up to date throughout. A very thorough service.
Miss C, Gloucestershire

Katie, Carey

Now that the dust has settled I just wanted to thank you for your dealing with the coveyancing for the sale of our Mother's flat. I know it was rather more protracted than expected but thanks for your perseverence and professional approach.
Mr G & Mrs B, Sutton

We are most grateful to you for all your hard work and diligence in seeing through this sale to a conclusion.
Mr R, Chesterfield

Just a short note to thank you for the prompt and efficient way you handled the sale of our property.
Mr E & Miss W, Chesterfield

Outstanding service from start to finish. Very efficient, polite and friendly staff, who respond to emails very quickly within a very short time limit.
Mr & Mrs T, Mansfield

This has been a real saga. Thanks for all you patience and hard work! We really appreciate it.
Mr H

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

Dealt with Mark Bilton for over 25 years re commercial and residential properties. 1st class service from all departments, I would highly recommend this firm!
Mr J, Hitchin

Excellent service from friendly, approachable people.
Mrs N, Bakewell

Thank you so much for everything, you have been an absolute star!
Miss N, Nottinghamshire

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

Josh was brilliant. Many thanks to you all.
D Gamble, Mansfield

Exceptional value for money compared to other solicitors. Direct contact with the solicitor and his assistant. Responses were quick. A very good service and would definitely recommend.
Mrs W, Mansfield

Used the firm before and will use again. Can't think of a better recommendation!
Mrs A, Chesterfield

Conveyancing services

We recently dealt with Jade Cody in relation to the sale of our home and purchase of new property. The service we received was outstanding. Any questions we had were answered promptly and the whole process was made seem less and as stress free as possible by Jade. At no point did we feel that they were too busy to deal with our matters and we were kept up to date regularly. We wouldn’t hesitate to recommend Banner Jones for conveyancing services.

(Conveyancing in Sheffield)
Mrs C, Sheffield

Fantastic service – Professional and personable

10/10 service. I always feel looked after when dealing with Mark Bilton and Dawn Wilford. They provide a fantastic service for a very reasonable price. They are always willing to help and are knowledgeable in all areas. I have recommended Mark and Dawn to many of my friends and colleagues and I have only received great feedback.

(conveyancing Solicitors in Mansfield)
Mr M, Mansfield

Efficient and helpful for the purchase of my first home

I used Jade Cody as my solicitor to purchase my first home. I received timely responses to all of my enquiries and was kept up to date on all matters. I would happily recommend Jade and the team at Banner Jones to people purchasing a property!

(Conveyancing Solicitors Sheffield)
Mrs L, Sheffield

Many thanks again to you for all your help with the purchase, you made it very stress free which was very much appreciated!

(Conveyancing Solicitors Sheffield)
Mrs E, Sheffield

Auction Sale

I really do appreciate the efficiency, speed and professionalism with which you have worked. Especially given the sensitive circumstances.

I would have no hesitation in using your services again and indeed recommending you.

(Solicitors in Mansfield)
Mrs C, Mansfield

Thank you very much for completing this assignment in the timeframe I requested. I appreciate it very much. You guys have been excellent throughout in your dealings with this. Megan has been professional perfection. I will be using you guys next time (if you'll have me).

(Conveyancing in Sheffield)
Mr C, Sheffield

Thanks Karen and Amber you have all been brilliant through this process!
Mrs H, Leicester

Recommended conveyance service

Cheryl Bradley at Banner Jones Mansfield has carried out conveyance work on 4 properties for me and the whole process has been highly professional.

(Conveyancing in Mansfield)
Mrs M, Mansfield

First time property investor

Tim Barley and his team, have been excellent throughout. The entire process has gone seamlessly. We were particularly impressed with how Banner Jones gave us a weekly update and communicated with our estate agents and mortgage broker. We never felt out the loop and we didn't have to chase for information. There is no doubt that we will use Tim at Banner Jones for our next investment. We have already recommended Banner Jones (Tim) to another investor for their next purchase.

(Conveyancing Solicitors Sheffield)
Mr & Mrs T, Sheffield

Relocation

Banner Jones provided an excellent service during our relocation. They always responded to any request and were polite and courteous at all times. Moving home is stressful but relocating is even more stressful. Banner Jones made the relocation work for us. Thank You.

(conveyancing solicitors mansfield)
Mrs M, Mansfield

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 8-12 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 the house I am buying has quarantined owners in it?

Unfortunately, in this situation the seller will not be able to give vacant possession, which will lead to completion delays. As a preventative measure, as per question 1, we can offer to exchange contracts and complete on the same day, which ensures that contracts are only exchanged if all parties in the chain are able to move on that day, thus reducing the risk to all parties. This can be more stressful so we ask that clients be sensible and accommodating of the situation.

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 single property ownership this tax is calculated at 5% for the portion of the property value between £250,001 and £925,000, 10% for the portion between £925,001 and £1,500,000 and 12% for the portion £1,500,001 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. There are different rates for First time buyers and "second homes/buy to let".

See our stamp duty page for more details

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).

See all frequently asked questions for Help to Buy Scheme

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.

When you have had your Help to Buy loan for 5 years you will need to start to pay back the interest. There are a few options open to you at this stage and we can discuss with you which might be the best one.

Options

Do nothing and start to pay the additional interest, however, if your house has significantly increased in value over the first 5 years this maybe more than you thought.
Pay off the balance due to Help to Buy from your savings if you have enough.
Pay off the balance due to Help to Buy by re-mortgaging your property.
Pay off the balance due by selling the property.
Pay off part of the balance by “staircasing” which means that you will reduce the Help to Buy stake in your property from 20% to 10% for example. If your house has increased in value this would be a sensible option so that you would then own more of the property's equity than before.

At Banner Jones we’ve devised a simple fixed fee Help to Buy service for anyone who needs their legal ownership updating. For £605 plus vat we will help you decide which option is best for you, take your instructions and deal with all of the Help to Buy paperwork. We can also assist with a mortgage broker as well if you need assistance with a re-mortgage. There will also be a small fee payable to the land registry to update the ownership, and you will also need to arrange a valuation report on your property. Your mortgage lender should be able to assist with this.

If you are in a position to pay off the full equity loan in year five or six, that’s great, but don’t be put off opting for a Staircasing payment if that’s more manageable. It’s a relatively simple process, and it means that another 10% of the value of your property belongs to you, and you alone. For more information on our Help to Buy service speak to the central quotes team on 01246 560 560 . We have specialists in our offices in Sheffield, Chesterfield, Dronfield and Mansfield.

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Help to Buy Scheme

UPDATE: The Help to Buy Equity Loan Scheme is closing to new applicants on the 31st October 2022. This is to ensure that you have legally completed on your purchase by the 31st March 2023 when the scheme comes to an end. For more information click here