Events and offers
Help to Buy scheme
Terms and Conditions
Who is eligible?
1.1 This offer is only available to eligible first time purchasers (“you/purchasers”) on selected new build plots and developments in England only (excluding London). This new scheme operates from 1 April 2021 to 31 March 2023. The amount you can borrow is dependent on the region the home you wish to buy is in.
1.2 Help to Buy is only available on repayment mortgages and on properties which are occupied by the individual or individuals taking out the mortgage.
1.3 To access the equity loan, you must satisfy the “Eligible Purchaser” criteria set out by Homes England and all purchaser(s) must be approved by the Help to Buy Agent. Further information on the “Eligible Purchaser” criteria is available from: https://www.gov.uk/government/publications/help-to-buy-equity-loan-buyers-guide.
How does it work?
1.4 Purchasers will be required to raise funding (which includes a mortgage and a deposit) of not less than 80% of the property purchase price (excluding any mortgage fees). The property will be subject to a first charge in favour of the mortgage company. Your deposit must be a minimum of 5% of the full property purchase price. The mortgage lender's criteria may affect any deposit percentage and whether it applies before or after the equity loan is deducted from the purchase price.
1.5 Homes England will provide an equity loan to eligible first time purchasers of not less than 10% and not more than 20% of the full purchase price subject to the terms of the equity loan agreement.
1.6 The equity loan provided by Homes England will be secured by way of a second charge on the property behind the first charge referred to in paragraph 1.4.
Paying back the equity loan
1.7 Purchasers must agree to repay the loan in full, plus any interest accrued and management fees.
1.8 For the first 5 years, the equity loan provided by Homes England is interest free. There is a payment of a £1 monthly management fee to pay by Direct Debit.
1.9 From year 6, interest will be payable by you at an annual gross rate of 1.75% of the amount you borrowed. The figure will rise each year in April by2%. You will also continue to pay the monthly management fee of £1 for the life of the loan. The above fees do not count towards paying back the equity loan.
1.10 You must repay the equity loan to Homes England when you: (i) sell the property; or (ii) pay off the repayment mortgage on the property; or (iii) reach the end of the equity loan term which is 25 years from legal completion of the property.
1.11 You can repay the equity loan to Homes England at any time following legal completion. Repayment whether in full or in part will be based on the market value of the property at the time of the repayment(s) and you will have to arrange and pay for the valuation of the property at that time. At any time, you can make part repayments of at least 10% of what your home is worth, to reduce how much you owe. For example, you could repay 10% if you took out a 20% loan. Or repay 10%, 20% or 30% at a time if you took out a 40% loan. To work out how much you pay back we need to know the current market value of your home.
1.12 If you are selling your property, the equity loan will be repayable on either (i) the market value of your property; or (ii) the price your property sells for, whichever is the highest. This means that if the property increases, so does the amount you repay on your equity loan. If the value of your property decreases, the amount you owe on your equity loan will also decrease. This may result in Homes England being paid more or less than the original loan value.
1.13 If, on the sale of the property, the price of the property has fallen and there is insufficient money from the sale to repay the equity loan after the mortgage has been paid you will lose any deposit you paid towards your property. Homes England will not however seek to recover the balance of their equity loan from you.
1.14 Detailed terms and conditions apply to the equity loan which will be made available to the purchaser via their legal advisors as part of the conveyancing process.
An example of how Help to Buy works in the West Midlands region is as follows:
Maximum house value: £255,600
(5% of full purchase price)
(20% provided by Homes England)
(Based on maximum West Midlands region price cap)
The equity loan provided by Homes England will not incur any loan fees for the first 5 years. From year 6, interest will be payable by the purchaser at an annual gross rate of 1.75% of the amount you borrowed. The figure will rise each year in April by the Consumer Prices Index plus 2%.
Open market value
(a 25% uplift in value)
(assuming no repayment of capital)
(20% of the open market value)
Remainder available to purchaser
David Wilson Homes General Terms and Conditions
Any promoted David Wilson Homes offer is subject to contract and status. Offers are on selected plots only and are subject to availability. The offers advertised cannot be used in conjunction with any other offer on the same plot unless expressly stated otherwise. Prices and details are correct at time of going to press. All images are typical of David Wilson homes and are for illustrative purposes only. Please contact the development in which you are interested for further details.
David Wilson Homes reserve the right to withdraw or alter any of these offers at any time prior to the payment of a reservation fee. Contracts must be exchanged within 28 days of reservation of your property. Failure to do so may result in the loss of all or part of your reservation fee.
The current specific offers being advertised in relation to selected David Wilson Homes developments are also subject to the specific terms and conditions set out above (N.B. these offers may vary from time to time and you should refer to the development in which you are interested to discover which offers are available on specific plots and developments).
David Wilson Homes will not be liable for the refusal of a mortgage based on the borrower’s individual circumstances which leads to the loss of any reservation fee. David Wilson Homes will not be responsible for the failure of any deal due to any defects in your existing property which arise as a result of an inspection or survey, whether a part exchange deal has been agreed or not. These terms and conditions do not affect your statutory rights.
David Wilson Homes is a brand name of BDW Trading Limited (Registered Number 03018173) which is a subsidiary of Barratt Developments Plc (Registered Number: 00604574) both with registered offices at Barratt House, Cartwright Way, Forest Business Park, Bardon Hill, Coalville, Leicester, LE67 1UF.
If you require a mortgage, you are strongly advised to obtain advice from a regulated adviser. David Wilson Homes recommends from a panel of New Home Mortgage Advisers who have extensive knowledge of the new build mortgage market, though you may, of course, seek such advice from your own mortgage adviser.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
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Site and location
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Please note that all images are for illustrative purposes only. Final elevations of the property purchased may differ from those shown. Images include optional upgrades at additional cost. Please see our Image Disclaimer for further details.
Super fast broadband is available on selected plots only. Broadband speeds may vary, which may be affected by various factors including distance from the exchange, time of day and internal home wiring. Actual installation time will be dependent on the broadband provider.
Square footage is the total internal floor area of the home, measured from the internal face of blockwork, excluding the garage (if applicable) and any area with less than 1.5m clear headroom under sloping ceilings. The area taken by stairs is included in both floors that the flight serves.
Gross annual projected rental yield figures are based on the projected yields of at least two independent valuations supplied. Figures do not represent guaranteed rental return and are based on the property being continually rented.
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Following withdrawal or termination of any offer, we reserve the right to extend, reintroduce or amend any such offer as we see fit at any time.