Great news everyone! Owning your very first Damson Home has just got even easier and even more affordable!
Damson Homes properties can now be purchased using Help to Buy Equity Loans where the Government will loan you unto 20% of the value of a brand new Damson Home worth upto £600,000 (e.g. Most of them).
This scheme is open to both first time buyers and home movers (not landlords however – sorry) but basically this is most of us!
Essentially this is how it works…
- You’ll need to contribute at least 5% of the property price as a deposit
- The government will give you a loan for up to 20% of the price
- You’ll need a mortgage of up to 75% to cover the rest
And it’s Free for the first 5 years!
You won’t be charged loan fees for the first 5 years of owning your home.
In the 6th year, you’ll be charged a fee of 1.75% of the loan’s value. After this, the fee will increase every year. The increase is worked out by using the Retail Prices Index plus 1%.
Paying off your loan
You’ll have to pay back the equity loan when you sell your home or at the end of your mortgage period – whichever comes first.
You can also pay back some of your equity loan without selling your home. You can pay back either 10% or 20% or the total amount, so long as the loan is worth at least 10% of the value of your home.