The government's Help to Buy equity loan closes to new applications at 6 pm Monday 31st October 2022, meaning that there’s still time to open up an application if you’re a first-time buyer wanting to get your foot on the property ladder.
What is Help to Buy?
The government-backed Help to Buy scheme allows first-time buyers in England (Separate schemes are available in Wales and Scotland) to purchase a new build house with just a 5% deposit. The government will then provide a Help to Buy Equity Loan for up to 20% of the value of the property, 40% if you’re buying in London. This equity loan is interest-free for 5 years and can be repaid at any time within 25 years or on the sale of your home. In the sixth year, you’ll be charged interest at a rate of 1.75% which will be applied to the equity loan amount originally borrowed.Am I Eligible to Apply?
To be eligible to apply for a Help to Buy scheme you must:- Be 18 or over
- A first-time buyer
- Able to afford the fees and interest payments
You cannot get the equity loan if you have ever:
- Owned a home or residential land in the UK or abroad
- Had any form of sharia mortgage finance
The property you buy with your equity loan must be:
- A new build
- Sold by a Help to Buy registered homebuilder
- The only home you own and live in
- It must not have been lived in by anyone before you buy it.
What Can My Budget Be?
The maximum property purchase prices for Help to Buy properties across England are: North East - £186,100 North West - £224,400 Yorkshire and the Humber - £228,100 East Midlands - £261,900 West Midlands - £255,600 East of England - £407,400 London - £600,000 South East - £437,600 South West - £349,00Key Dates
21st October 2022: Homebuilders with an approved forecast can submit a change request until 5 pm on Friday 21 October 2022. 31st October 2022: The Help to Buy equity loan scheme closes to new applications on 31st October at 6 pm. 31st December 2022: Homebuilders are required to reach Practical Completion by 31 December 2022. 31st March 2023: Homebuyers must legally complete their applications by 31 March 2023 and are expected to have the keys to their home by 6 pm.
