Help to Buy is a government backed scheme offering an equity loan to assist you in the purchase of your new home, with a deposit as little as 5% and the government adding up to an additional 20%, enabling you to buy with effectively a 25% deposit. As from April 2021 the scheme will only be available to first time homebuyers.

Help to Buy is available in England from house builders registered to offer the scheme. Help to Buy has been available since 2013. In November 2015, Government announced an extension of the initiative up to 2021.

If you are looking to buy we advise you arrange a no obligation consultation with one of our Mortgage Advisers by calling 01395 222391.

From April 2021 the price will capped by each region in England as follows:

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

Equity Loan

What is it?

The Help to Buy equity loan makes new build homes available to all home buyers (not just first time buyers) who wish buy a new home, but may be constrained in doing so. As long as you have a deposit of 5%, up to 20% of the purchase price is available through an equity loan funded by the Government. A mortgage for the remaining 75% will need to be secured from a commercial lender.

Help to Buy will run from April 1st 2013 until 2020.

Who qualifies?

  • You must have a minimum deposit of 5% of the full purchase price.
  • You must be eligible to take out a mortgage from a commercial lender.

What properties are included?

  • New build properties only (check out the mortgage guarantee scheme below for existing properties).
  • Properties under £600,000 in value.
  • Help to Buy is currently only available in England.
  • Applications for the Help to Buy 2021-2023 scheme can be made from Autumn 2020.

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.

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