The official Government Help to Buy website
Leaving university with a debt of £20,000, Train Manager, Michelle Nicholson (33) realised it would be a long time before she’d be getting a foot on to the property ladder.
Michelle spent some years moving in and out of rented accommodation in Birmingham, until tired of playing the lodger, she longed to have her own bricks and mortar.
After paying off my debts, I felt ready to buy a place of my own, but because I needed to save a huge deposit, I thought I was being too ambitious and that home ownership was way out of my reach.
When the government announced the launch of the Help to Buy equity loan scheme, Michelle decided to find out more.
“Miller Homes had a new development about a mile away from where I was renting, so I decided to go for a look around, to see if there was anything in my price range.
The Help to Buy equity loan helps buyers purchase a brand new home with an equity loan of up to 20% of the full price of the property. Buyers don’t have to pay any fees on this loan for the first five years and own 100% of the property from the start.
“It was amazing; while I was at the development, they worked out that with the Help to Buy equity loan, I could afford to buy one of their brand new three bedroom houses and only needed a 5% deposit.
Buyers need to be able to fund at least 80% of the property price through a conventional mortgage with a lender for the Help to Buy equity loan. Lenders usually require you to have a deposit of at least 5%, so a mortgage will typically be for 75% of the purchase price.
“My parents helped me with some of the deposit and are both over the moon that I’ve finally got my own place.
Within weeks, Michelle was being handed the keys to unlock her own front door.
“I’m very excited about finally owning my own home; it’s a whole new chapter in my life. The Help to Buy equity loan has been brilliant for me, without it I would never have made it on to the property ladder. I’d strongly advise anyone who wants a place of their own to find out more about this scheme for themselves. I kept thinking “Oh my gosh! I’ll never get on the property ladder”, but I’m proof that it is possible.
“What’s amazed me the most, is
, that I’ve gone from renting a two-bed –flat to a brand new three-bedroom –house with garden, and I’m only paying £1 a month more!”