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First Time Buyer

Revised Help to Buy: Equity Loan scheme now open

Paloma Kubiak
Written By:
Paloma Kubiak
Posted:
Updated:
16/12/2020

The reconfigured Help to Buy scheme has opened for applications from today – 16 December.

Applications for the former Help to Buy: Equity Loan scheme (2013-2021) closed yesterday but homebuyers have until 31 March 2021 to legally complete their purchase and get the keys to the property.

But the new Help to Buy: Equity Loan scheme (2021-2023) is now accepting applications with buyers able to move into properties from 1 April 2021.

As with the previous guise of the scheme, the government will lend first-time buyers in England up to 20% of the cost of a new-build home (40% in London) with borrowers required to pay a further 5% deposit and the remainder is made up of a mortgage. The loan is interest-free for five years.

But under the new scheme, Help to Buy has regional price limits set at 1.5 times the average first-time buyer price in each region of England.

It’s hoped this will keep the price of new homes closer to the regional first-time buyer average.

As an example, in London, the maximum property price is £600,000, while in the North East it’s £186,100 while in the West Midlands it is £255,600.

To be eligible for Help to Buy: Equity Loan (2021-2023):

  • you must be a first-time buyer
  • the new build home you buy must be within the relevant regional price cap

You and anyone you’re buying a home with must:

  • not own a home or residential land now or in the past in the UK or abroad
  • not have had any form of sharia mortgage finance.

Registered homebuilders advertise Help to Buy homes for sale on their developments. You can also search for a local Help to Buy agent.

Help to Buy has already helped more than 270,000 people into home ownership and 82% are first-time buyers.

See YourMoney.com’s Help to Buy guide for more information.