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

Revised Help to Buy: Equity Loan scheme now open

0
Written by:
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.

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.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

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