You are here: Home - Mortgages - First Time Buyer - News -

Help to Buy application deadline closes on 15 December

Written by: Owain Thomas
Buyers hoping to use the current Help to Buy Equity Loan scheme in England have just over a month to do so as the scheme will close to new applications on 15 December.

Those applicants will then have just over three months to complete their purchases by the 31 March deadline – although many in the property market are warning this could be a challenge given current demand.

Meanwhile, the successor scheme which includes regional caps and is limited to first-time buyers only will start accepting applications from 16 December.

This scheme does not come into effect until 1 April and is currently expected to be open for two years.

The announcement was made by the Ministry of Housing Communities and Local Government (MHCLG) as it published a guide to the new scheme.

“Applications for Help to Buy: Equity Loan 2013-2021 scheme end on 15 December 2020,” MHCLG said.

“First-time buyers eligible for Help to Buy: Equity Loan (2021-2023) can apply from 16 December 2020, with a homebuilder registered for the scheme.”

The guide which explains how the Help to Buy scheme works includes recommendations to seek independent financial advice when buying the home.

Buyers have three months to exchange contracts once they have received the authority to proceed and must then complete buying the home within six months of exchanging contracts.

Permission needed for alterations

Structural alterations to the property, such as adding an extension or converting a bedroom into a bathroom, are not permitted under the new scheme without permission from Homes England.

It noted that permission will only be given to make structural alterations on medical grounds.

“Help to Buy homes are for first-time buyers, now and in the future. We want to make sure they are always affordable,” it said.

“The equity loan is linked to the value of your home. So, if you make structural alterations without our permission and it increases the value of your home, the equity loan amount you owe will increase.

“If we give permission to make structural alterations and the value of your home increases, we will ignore the value of that alteration when we work out how much you owe on your equity loan.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week