While traditional house-buying remains the norm, a growing number of people are exploring alternative options, and the Help to Build scheme has emerged as a popular choice. This government initiative aims to make it more affordable for people to build their own homes, catering to those who seek greater control over their living environment and a unique architectural style.

The Help to Build scheme is a government equity loan that offers financial assistance to aspiring custom builders and self-builders. It covers a portion of the upfront costs associated with land acquisition and construction. This financial support could be particularly beneficial for those with smaller deposits, making the dream of building a home more attainable.

 

Key Features of the Help to Build Scheme

1. Flexible Loan Amounts: The Help to Build scheme offers loan amounts ranging from 5% to 20% (up to 40% in London) of the estimated total cost of the project. This flexibility allows borrowers to tailor the loan amount to their specific needs and financial circumstances.
2. Phased Payments: Unlike traditional mortgages, where loan disbursement occurs upfront, Help to Build funds are released in stages. This phased approach aligns with the project's progression, ensuring that funds are utilized when they are most needed.
3. No Interest for the First Five Years: For the initial five years, no interest is charged on the equity loan. This grace period provides borrowers with valuable time to settle into their new home and accumulate the necessary funds to repay the loan interest obligations.

 

Benefits of the Help to Build Scheme

1. Greater Control: Custom builders and self-builders have the freedom to design and personalize their home to their exact specifications, ensuring that the living space aligns with their lifestyle and preferences.
2. Unique Architectural Style: Building your own home provides the opportunity to incorporate unique architectural elements and design features that reflect your personal taste and style.
3. Locational Flexibility: The Help to Build scheme allows borrowers to build their homes in locations that suit their needs and preferences, not just those dictated by the existing housing market.

 

Eligibility Requirements

To qualify for the Help to Build scheme, applicants must meet certain eligibility criteria:

1. Age: Applicants must be 18 years of age or older.
2. Residence: Applicants must have the right to live in England.
3. Deposit: Applicants must have a minimum deposit of 5% of the estimated project cost.
4. Intended Use: The new home must be the applicant's only residence.
5. Mortgage: Applicants must secure a self-build mortgage from a lender registered with the Help to Build scheme.

 

Additional Considerations for Homeowners

Apart from the financial aspect, homeowners considering the Help to Build scheme should also factor in:

• Project Management: Engaging a qualified project manager can streamline the construction process, ensuring adherence to timelines, budgets, and quality standards.
• Legal and Planning Requirements: Thoroughly understanding legal and planning regulations is essential to avoid delays or potential issues down the line.
• Financial Planning: A comprehensive financial plan should factor in the overall cost of the project, including construction costs, professional fees, and ongoing maintenance.

 

 

The Help to Build scheme has opened up new possibilities for individuals seeking to build their own homes. By providing financial assistance and flexibility, the scheme empowers aspiring custom builders and self-builders to create their dream homes, aligning with their aspirations and preferences

We can provide comprehensive advice on the scheme's eligibility criteria, loan options, and the application process. Contact us today at 0345 2185211.

 

 

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Figures from - https://assets.publishing.service.gov.uk/media/632c3c598fa8f51d2669fa12/Help_to_Build_customer_guide_220922.pdf