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
You can apply on your own or with other people. All applicants must meet the eligibility criteria.
If you’re married, in a civil partnership, or cohabiting with your partner (and you plan on continuing to live together), you must make a joint application.
If you meet the criteria, you can open an account with a bank of your choice, be sure to search around and see which banks in England offer the scheme.
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 – £349,00
Key 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.
Chancellors’ Help to Buy Homes
Chancellors are proud to work with some of the UK’s most exciting developers to bring you a portfolio of new homes across Berkshire, Buckinghamshire, Oxfordshire, Hampshire, Surrey, London, Herefordshire, Wiltshire, Worcestershire, and Mid Wales.
Below are current developments that offer Help to Buy:
Kings Oak House – Harrow
Maiden House – Maidenhead
Marlborough House – Reading
If you’re a first time buyer, get in contact with our New Homes Team who will be able to assist with any questions you may have about the Help to Buy scheme: newhomesandland@chancellors.co.uk | 01497 821222
