16 Dec 2020
New Help to Buy Scheme
Today we see the introduction of the new Government Help to Buy Scheme which will run until March 2023.
The biggest difference between the new scheme and the old is the fact that only first-time buyers are able to access the new scheme.
In addition, maximum purchase prices have been set which vary depending on the region your property is located. The caps are as follows;
Help to Buy: Equity Loan price caps – April 2021 to March 2023
|Region||Maximum Property Price|
|Yorkshire and the Humber||£228,100|
|East of England||£407,400|
The main detail of the scheme remains the same in that you can purchase a new build property only on selected sites using a 5% deposit. You can then borrow a minimum of 5% up to a maximum of 20% (40% in London) of the purchase price. We then arrange a mortgage for the rest.
You do not pay any interest on the equity loan for the first 5 years, after which only the interest will need to be paid on the loan.
You can make partial repayments or clear the loan in full as long as they are a minimum of 10% of what your home is worth at the time of the repayment.
Thanks to our fabulous broker Kasia (our in-house expert on all things Help to Buy) all of our brokers can apply directly online to the relevant Help to Buy department on your behalf for an ‘authority to proceed’ helping speed up the process.
We believe this is a great scheme that has helped thousands of people onto the property ladder that couldn’t have previously afforded to. In addition, the government has invested our tax money into property which has proved to be very lucrative - a true win-win!
For any advice or help you need, please get in touch with our team.