Help to Buy is a government-backed initiative to help people buy a home. It's open to homebuyers (both first-time buyers and home movers) in England who can provide a 5% deposit and is available on homes valued up to £600,000.
A variety of small, medium and large housebuilders are expected to offer their new homes under the Help to Buy scheme.
There are two options to choose from - equity share or a mortgage guarantee.
Available from April 2013, the shared equity option expands the existing FirstBuy scheme and can help buyers who want to reduce their monthly mortgage payments by supplementing their 5% deposit with a loan of 20% of the value of the property, interest-free for five years. The loan is repayable at any time, or when the property is sold.
This part of the scheme is only available on new-build homes with participating housebuilders.
Available from October 2013, the mortgage guarantee option is open to those who can afford the repayments on a 95% home loan. A government guarantee encourages lenders to offer buyers with a low deposit access to affordable mortgages. Buyers still need to meet lenders' affordability criteria.
This part of the scheme is available on new-build and re-sale homes.