Help to Buy update

Covid delays were threatening the success of approximately 16,000 sales nationwide.

The previous Help-To-Buy scheme helped to sell almost 300,000 new homes over 7 years, clearly a resounding success.

In it’s former offering, the Help to Buy scheme was not limited to first time buyers, with a larger price range up to £600,000. 

The government’s extension to the deadline provides housebuilders with an additional two months on the previous deadline, meaning purchases can be completed by the end of May.

However, after this date, the revised version of Help to Buy will remain available.

The new scheme is now available to help first time buyers with a 5% deposit saved, looking to get on the housing ladder asap. The Government will provide those eligible with a 20% equity loan towards a brand new home, including properties in the South East up to the value of £437,600.

The loan is interest-free for the first 5 years, with a small monthly management fee of just £1 due monthly. From the 6th year, interest payments are just 1.75%, increasing in line with the Customer Price Index every April. You don’t have to pay back the loan itself on a monthly basis, but this can be paid partially or fully at any time whilst living there.

What’s more, if the house equity falls in value, the equity loan repayment does, too.

You are eligible for this new scheme if:

• The property is a brand new house from a  developer registered with Help to Buy: Equity Loan
• It is your sole property in the UK or abroad
• You are a first-time buyer, as well as your partner if you are married or in a civil partnership
• You can demonstrate that you have a 5% deposit saved and can afford the monthly Equity loan payments and the mortgage

For more information on the new Help To Buy Scheme, click here.