New Help to Buy scheme announced
The Government has announced a new Help to Buy scheme to run from April 2021. It is restricted to first-time buyers and includes regional property price caps to ensure the scheme reaches people who need it most. There are no changes to the current Help to Buy equity loan scheme which runs to March 2021.
The new scheme will run from April 2021 to March 2023. As with the current scheme, under the new scheme, the government will lend buyers up to 20% of the cost of a newly built home, and up to 40% in London.
Help to Buy is a UK government scheme aimed at helping people with small deposits to buy their first home or move up the property ladder. It’s available as an equity loan until 2021.
The London Help to Buy scheme is a popular Government-backed initiative helping first-time buyers, as well as existing homeowners, move up the London property ladder.
- Just a 5% deposit is required
- You only need a 55% mortgage from a bank
- 40% Government equity loan – interest-free for the first 5 years
- Available on new build homes valued up to £600,000
- For new homes in the 32 London Boroughs & City of London
Help to Buy is a scheme aimed at first-time buyers and homeowners looking to move up the property ladder.
So long as you can raise a 5% deposit, the Government will provide an equity loan of up to 20% of the property value.
You’ll then have to qualify for a standard mortgage for the remaining 75%. Lenders participating in the scheme include Santander, Barclays, NatWest and Halifax.
Help to Buy is available on new-build homes with a maximum value of £600,000. This scheme is scheduled to close in 2021