Homes England have recently announced that from the 16th December 2020 first-time buyers will be able to apply for the New Help to Buy Equity Loan scheme. The scheme will benefit those first-time buyers looking to purchase a new build home and they will be able to reserve their dream property from mid-December, looking to move in as early as the 1st April 2021.
With a Help to Buy Equity Loan, the government will lend homebuyers up to 20% of the cost of their new build property (40% in London) and the buyers will be expected to pay a deposit of at least 5%. The buyers will also need to arrange a mortgage to cover the remaining costs of the home purchase. This government equity loan will be interest-free for the first five years and after this period fees will start at 1.75%.
The government have announced that the scheme will be available from 2021 until 2023 and will have price limits on properties, as with previous schemes. With the equity loan, the regional price limit for a new build property will be set at 1.5 times the average first-time buyer price in each region across England. The aim of this cap is to help reduce the amount that first-time buyers will need to borrow.
Will German, director of Help to Buy at Homes England, commented on the new scheme, “Help to Buy has already helped more than 270,000 people into home ownership and 82% are first-time buyers. The new Help to Buy builds on this success with first-time buyers in front of mind.”
If you would like to find out more about the new scheme, visit the GOV website. Alternatively, if you are interested in buying a new build property click here to view our selection of new homes developments.*
*Please note, not all properties available to view here will be eligible for the new Help to Buy scheme. Please contact us if you wish to discuss a particular property or development.