The Help to Buy equity loan is a direct replacement for the First Buy scheme that was running in England.
Help to Buy equity loans are only available in England, but the Scottish and Welsh government’s have been discussing the prospecting of introducing similar schemes.
In terms of alternatives to Help to Buy, those looking to purchase a new build continue to have the option of a NewBuy loan.
NewBuy lets you buy a home with a deposit of only 5 per cent of the purchase price. It is available on new build properties only. A similar scheme exists in Scotland called MI New Home.
According to the CML, advisers should also consider alternative deals offered by some lenders wishing to increase the supply of low deposit mortgages.
Barclays, for example, offer ‘Family Springboard’, while Nationwide have a ‘Save to Buy’ scheme.
Mark Bullard, head of sales at NatWest Intermediary Solutions, said advisers should also check out the latest 90 per cent LTV mortgages, multiple applicant, guarantor mortgages, gifted deposits and gifted equity deals available.
