If you’re a first-time buyer and considering buying a new build property, then the new Help to Buy: Equity Loan scheme could be a good option for you to consider.
The new H2B scheme will be available for two years from 1 April 2021 – applications are open now, but buyers will only be able to move in from this date. This new scheme is only available to first-time buyers with 5% deposit and unlike the scheme ending in 2021, won’t be available to those who already own their own home and are just looking to move.
The scheme allows buyers to borrow up to 40% of their property value in London, or up to 20% elsewhere in the UK.
It will also be subject to capped prices. In London buyers will still be able to use it for property up to the value of £600,000, but in the rest of England it will be capped to 1.5 x the average first time buyer house price in each region.
Updates to the current H2B scheme: COVID-19
The current Help to Buy equity loan scheme is due to end in March 2021. Applications ended on the 15th December to ensure that buyers can complete the sale before the deadline on 31st March 2021.
Due to COVID-19 affecting build times of properties, the deadline of the 31st March for completion has not been extended, but the December 2020 deadline for all properties being built has been extended until 21st February 2021.
Whether you’re looking to purchase a newbuild home using the Help to Buy: Equity Loan scheme, or you’re already taking advantage of the current scheme you can find out more details about how both the 2013-2021 scheme, and the 2021-2023 scheme are working on the government website with their help to buy equity loan buyers guides here.