Help to Buy - deposit

MS_2008

Hi,
I'm seeking to move house and the sales advisor at the new build site mentioned the Help to Buy scheme.

I always thought this was for first time buyers but she pointed out that it's also available for those already on the property ladder.

Based on recent house prices on my estate, my property is roughly 40-44k in equity.

My question is, with the HTB scheme do you need the deposit as cash or could the equity from the sale of my current home be used towards the deposit as you would do outside of the scheme?

Thanks in advance.

kingstreet

Equity from sale is fine.

The cash deposit paid by your buyer (or the buyer at the bottom of the chain) will pass up the chain becoming a smaller percentage of the higher purchase prices as it does.

This should be acceptable to the builder and will be agreed between your solicitor and theirs in advance of exchange of contracts.

I have never known someone in your position have to make up a deposit to 10% for exchange of contracts, although you may see it suggested you will.

MS_2008

Thank you for replying, that really helps.