Applications for the former Help to Buy: Equity Loan scheme (2013-2021) closed yesterday but homebuyers have until 31 March 2021 to legally complete their purchase and get the keys to the property.
However, the new Help to Buy: Equity Loan scheme (2021-2023) is now accepting applications with buyers able to move into properties from 1 April 2021.
Some lenders have already launched products for the new scheme.
As with the previous guise of the scheme, the government will lend first-time buyers in England up to 20 per cent of the cost of a new-build home or 40 per cent in London, with borrowers required to pay a further five per cent deposit and the remainder is made up of a mortgage. The loan is interest-free for five years.
But under the new scheme, Help to Buy has regional price limits set at 1.5 times the average first-time buyer price in each region of England.
It’s hoped this will keep the price of new homes closer to the regional first-time buyer average.
As an example, in London, the maximum property price is £600,000, while in the North East it is £186,100 while in the West Midlands it is £255,600.
To be eligible for Help to Buy: Equity Loan (2021-2023):
- borrowers must be a first-time buyer
- the new build home must be within the relevant regional price cap.
Anyone buying a home must:
- not own a home or residential land now or in the past in the UK or abroad
- not have had any form of sharia mortgage finance.