Since its launch in April 2013, the Government’s hugely popular Help to Buy: Equity Scheme has enabled the sale of hundreds of thousands of properties, helping buyers to get a foot on the property ladder.
The Government’s changes to the current scheme will come into effect from April 2021 to March 2023 and will see a new Help to Buy: Equity Loan scheme aimed specifically at first time buyers.
So what does this mean for you?
First time buyers only
From its introduction onto the market in 2013, the Help to Buy scheme was open to anyone who wanted to purchase a new build home but who was unable to do so because they didn’t have a big enough deposit saved. The equity loan came into force to plug this gap.
The loan allowed applicants to borrow up to 20% of the cost on homes up to £600,000 (40% in London), resulting in the need for a 5% deposit (as opposed to the regular 10%), and a 75% mortgage to make up the remaining purchase price.
From April 2021, only first time buyers will be able to apply for a loan and the £600,000 price limit will be reduced everywhere across England, with the exception of London.
New regional property price caps have been put into place to ensure that the scheme reaches people who need it most. These caps differ across England and are based on the average property price in a specific area.
All areas are listed below: