What is Help to Buy?

The Help to Buy Government initiative was launched in 2013. Subject to your client passing their affordability assessment, the Government will lend them up to 20% of the property value on a New Build property (up to 40% in London & up to 15% in Scotland). The scheme currently benefits both first and second time buyers, and Vida can also help on remortgaging or staircasing up to 85% LTV.

In England, London & Wales, the Government loan is interest free for the first 5 years, with just a £1 monthly fee applied for servicing the loan. From year 6 onwards, the customer pays interest at 1.75% of the amount of the equity loan. In Scotland, the Government loan is interest free, and for an indefinite period.


Who is this product for?

  • Those purchasing a New Build property where the developer is part of the Help to Buy scheme in England, London, Wales or Scotland, and they don’t fit the strict criteria of the High Street lenders
  • Those looking to remortgage an existing Help to Buy property, whether £ for £ and looking for a better rate, or releasing equity to ‘staircase’ and increase their stake (paying back part of the Government loan). Note: repaying all the equity loan is available as a normal remortgage as it is no longer Help to Buy.
  • Those customers who wish to use Vida’s ‘Buy Together’ initiative; using the Help to Buy Scheme

Key Lending Criteria

  • Available up to 80% LTV for a Scottish purchase, 75% in England, London & Wales
  • Up to 85% LTV remortgage when staircasing on all schemes, min equity increase is 10% in England, London & Wales, 5% in Scotland
  • Extensive New Build criteria - fast-tracked initial offer lasting 6 months, extendable by another 6
  • Minimum income £15,000
  • Gifted deposits accepted, builders incentives considered
  • Impaired credit history accepted
  • Up to 4 incomes accepted
  • Self employed minimum 1-year trading
  • Contractors & short work history
  • All mortgages will be Capital & Interest

DOWNLOAD THE HELP TO BUY FLYER

Vida's Help to Buy Purchase - Key Features

HTB Key features
  • One free standard valuation AND £200 contribution to legal fees
  • Rates from 3.79%
  • Qualifying new builds up to HTB limits (£600k England / London, £300k Wales, £200k Scotland)
  • Gifted deposits and HTB ISA (& bonus) permitted
  • Builder incentives considered above customers 5% deposit
  • Product Fee can be added to loan above Maximum LTV (England & Wales only, Scottish scheme rules do not allow)

Help to Buy Remortgage - Key features HTB Remortgage - Key Features

  • £0 product fee, one free standard valuation AND £200 contribution to legal fees
  • Rates from 4.39%
  • Those customers who wish to use Vida’s ‘Buy Together’ initiative; using the Help to Buy Scheme