Help to Buy Deadline
With rising house prices and inflation costs it has never been more challenging for first time buyers to enter the property ladder, but with the government's Help to Buy scheme many first time buyers have been able to purchase their first home. If you are a first time buyer looking to use the Help to Buy scheme, then you need to act fast as it is ending soon!
What is the Help to Buy Scheme?
The current Help to Buy scheme involves the government lending homebuyers between 5% and 20% of the cost of a newly built home, and up to 40% in London. The last date homebuyers can reserve homes and apply for the Help to Buy: Equity Loan is 31 October 2022 as this should allow enough time for homebuyers to legally buy their homes before the scheme ends on 31 March 2023.
You can still take out a mortgage with a help to buy loan to cover the outstanding price of the property. So if you put down a 5% deposit and take out a 20% equity loan, the mortgage will need to cover the remaining 75%.
What are the regional Price Caps?
|East of England||£407,000|
What is the eligibility criteria for Help to Buy?
To be eligible for the scheme you must be purchasing a new build property and meet the following:
- Be a first-time buyer
- Have a deposit of at least 5%
- Purchasing a home within your areas price cap
- Be purchasing a property to intend to live in as your primary residence
- Not rent out the property
- Not take out a mortgage with a term longer than 35 years.
How does the help to buy equity loan work?
Help to Buy equity loans are for a percentage of the property value, rather than a set cash amount. This means you could end up paying back more or less than you borrowed, depending on whether your home rises or falls in value. The loans are interest-free for the first 5 years.
Take a look at our current new build developments