Help to Buy Scheme (2021-2023)
First Time Buyers may be able to take advantage of the government-backed Help to Buy Equity Loan Scheme.
About Help to Buy
How much you can spend on your home will depend on which region it is in.
Region Price cap for Help to Buy homes April 2021 to March 2023 (These are the maximum purchase price of the property in each region)
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
South east £437,600
South west £349,000
You pay a deposit of 5% of the purchase price of your new home at exchange of contracts and arrange a repayment mortgage of at least 25% of the purchase price of your new home.
You won’t be charged interest on the equity loan for the first 5 years. Interest fees start at 1.75% and rise each year in April by the Consumer Prices Index (CPI) plus 2%. You pay a monthly management fee of £1 for the life of the equity loan.
An equity loan is secured against your property in the same way as a repayment mortgage. You must repay the equity loan when you sell the home, pay off your repayment mortgage or reach the end of your equity loan term. But, you can repay all or part of the equity loan any time before then.
- Help to Buy is available to first time buyers only
- You will only need a minimum of a 5% deposit.
- No annual household income limit.
- Help to Buy is only available on new build properties through certain approved and participating house builders.
- The government will lend you up to 20% of the value of the property through an equity loan, which will be interest free for the first 5 years and can be repaid at any time or on the sale of your house.
- You will only need to secure up to a 75% mortgage.
Central Financial Services have developed close relationships with a number of house builders that participate in this scheme. Our advisers arrange mortgages for many of their customers under the Help to Buy scheme and our knowledge of this specialised market means we are ideally placed to help establish whether this could be a good option for you.
For further information on the Help to Buy Scheme please call one of our advisers today who will be happy to explain how this new scheme could assist you in buying your new home.