From 1 April 2021 the current Help to Buy Equity Loan scheme will be replaced with a new scheme, for first time buyers only.
To help you get one step closer to finding your dream home, we’ve pulled together everything you need to know about the new Help to Buy scheme – and what it means for you.
What is the Help to Buy scheme?
The Help to Buy: Equity loan is a government-backed scheme to help buyers find, and fund, their next home. The scheme allows buyers to purchase a brand-new home much sooner than they may have been able to otherwise.
How is it changing?
This current London Help to Buy scheme, offering homebuyers loans for 40% of the purchase price on new build properties up to the value of £600,000 with only a 5% deposit, comes to an end at the end of March 2021.
It will be replaced by a new scheme from 1st April 2020. The new scheme is restricted to first time buyers only, and will run until March 2023. As with the current scheme, the Government will continue to lend eligible buyers up to 40% of the cost of a new build property. The maximum property price to be eligible will range across the country – but stay at £600,000 in London.
Will I need a hefty deposit?
With the new Help to Buy scheme, you will be able to buy a brand new home with only 5% deposit – and your mortgage can make up the rest.
What’s more, the equity loan is interest-free for the first five years, leaving you time to pay off the price of your dream home over time.
Buying with Help to Buy:
For more information on buying through the Help to Buy scheme, please get in touch with our dedicated sales team who will be happy to guide you through the properties available.