Help To Buy changes – all you need to know!

- Wed 30 Sep 2020

Thousands of homebuyers have been able to take advantage of the government Help to Buy scheme, which was first announced in 2013. The scheme was extended in 2015 to run until 2021, which now seems just a stone’s throw away, so what do homebuyers need to know about the revised scheme?

Firstly, and most importantly, the scheme will only be applicable to first time buyers. Previously the scheme was welcomed by all homemovers and whilst a large number included first time purchasers, many were also using the scheme to help them move on.

Secondly, the scheme will be capped by price bandings of different regions across England, which are reflected by the average prices of homes in each region. .

RegionPrice cap for Help to Buy homes April 2021 to March 2023
North East £186,100
North West £224,400
Yorkshire & The Humber £228,100
East Midlands £261,900
West Midlands £255,600
East of England £407,400
London £600,000
South East £437,600
South West £349,000

The scheme otherwise remains virtually the same; first time homebuyers who meet affordability and lending terms can borrow an equity loan of up to 20% (40% in London) of the sale price of a new build home. Applications for the Help to Buy 2021-2023 scheme can be made from Autumn 2020.

You must fund at least 80% (60% in London) of the sale price with a mortgage and at least a 5% deposit.

You won’t be charged interest on the loan for the first five years. Interest fees start at 1.75% and rise each year in April by the Consumer Prices Index including owner occupiers’ housing costs (CPIH) plus 2%. You pay a monthly management fee of £1 for the life of the loan.

Homes England, the lender, secures the equity loan as a second charge on your Help to Buy home. You must repay the equity loan when you sell the home, pay off your mortgage or reach the end of your loan term. But, you can repay all or 10% chunks of the loan any time before then.

So what should a First Time Buyer do to know if they qualify for Help to Buy? As with any home purchase, we advise you seek the help of a mortgage consultant who can access the whole of the market and also has a proven track record with the Help To Buy scheme, (almost all should have this).

At Bradleys, we have some of the best Mortgage Specialists in the region and all deal frequently with Help to Buy South on a weekly basis. You can arrange a video meeting, telephone call or a socially distance friendly face to face meeting, whichever your preference, and establish what your options you may have. Simply call 01395 222391 to arrange your appointment, the initial consultation will be completely free or charge and without obligation.

Once you have been approved for a mortgage and have an Agreement in Principle (AIP) you are able to start actively seeking the right home for you. As the largest provider of new homes across the West Country, our website is probably the best place to start that search.

Simple follow the below link and you will find access to all of our new homes sites, many of which will offer the Help to Buy scheme.

Bradleys New Homes


Kai Logan - Marketing Director

Kai Logan
Group Marketing Director