Revised Help to Buy: Equity Loan scheme now open
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.