Helping you to buy
Brick by Brick Shop
62 George St, Croydon, CR0 1PD
Mon-Wed & Fri: 10am-5pm
Our sales team, Shaun and Nez, are based in the Brick By Brick shop on George St in Central Croydon. They can work with you to find a new home that suits your circumstances – in the right location, and for the right price. Shaun and Nez have lots of experience with Help to Buy and Shared Ownership, so they can also advise on different ways to buy. We also have a mortgage adviser based in the shop who can help you pick a product that meets your needs.
Help to Buy - London
First time buyers and home movers are both eligible for a Help to Buy Equity Loan, where the government will lend you up to 40% of the cost of your new build home. You put in the minimum 5% cash deposit upfront.
This means you will have an overall 45% deposit against the purchase price of the new home. You won’t pay loan fees on the 40% loan in the first five year. From year six, a fee (linked to inflation) starts to be charged. This is currently 1.75% of the loan’s value. The fee will increase every year after this in line with inflation. The annual increase in the fee is calculated using the Retail Price Index (RPI) plus 1%.
These fees do not go towards paying off the government loan, which must be repaid in full by year 25. You can do this purchasing extra shares in the home over this period.
An independent financial advisor will work with you to determine the amount you can borrow from the government based on your household income, deposit and any regular monthly outgoings you may have and this in turn will inform the value of the property you can buy. With Help to Buy, you can only buy a home up to the value of £600,000.
Shared Ownership is a government backed scheme to help people to get onto the property ladder. You purchase a share in the property, ranging between 25% to 75% of the market value, and pay a subsidised rent on the share that you do not own.
You need a minimum deposit of 5% of the share you are purchasing – the rest of the share is borrowed in the form of a mortgage from a commercial mortgage lender.
The monthly rent of the share that you don’t own is generally set at around 2.75% of the value and will increase on 1st April every year by the Retail Price Index (RPI) plus 0.5%.
You can increase your ownership share as and when you can afford to do so, until your own your property outright.
You can purchase a home through Shared Ownership in London if:
Your household income is £90,000 a year or less
You’re a first time buyer, or you previously owned a home but can’t afford to buy one now
You’re an existing shared owner looking to move
The cost of the home is always based on market value and is dependant on the type, size and location of the property. We can put you in touch with an independent financial advisor at the start of the process who will work with you to determine the % of shares you are able to afford to buy initially, based on your household income, deposit and taking into account any regular monthly outgoings you may have.
Our experienced sales team will guide you through the process, helping you to decide which route best meets your needs, and showing you examples of the homes you could purchase through either route.