New government scheme offers help to first time buyers
The government has just announced that a new scheme is to be available from 16 December 2020 for first time buyers in England to help them in buying a new build property from April next year.
Called the Help to Buy: Equity Loan (2021-2023) scheme it offers an interest free loan from the government of up to 20% of the value of a new build property (or 40% in London) provided the buyer pays a deposit of 5% and arranges a mortgage of 25% or more. And the government has set regional price limits of 1.5 times of the average first-time buyer price in each region to reduce the amount that the first-time buyer needs to borrow.
Whilst the scheme is available for purchases to be completed from 1 April 2021 - and through to 2023 - a new build property can be reserved for purchase from mid-December meaning that all-important moving plans and budgets can be put in place much sooner.
Andrew Kidd, who is a Financial Consultant for Embrace Financial Services (who work in partnership with Your Move), said: “This is great news for first time buyers and will no doubt encourage a lot of people to take that all important step onto the property ladder.
We’ve already got a similar Help to Buy Equity Loan Scheme(*), which is available for all homebuyers, which the government claims has already helped more than 270,000 people into home ownership. And there will probably be many more who will benefit in the months to come since the government extended this Scheme’s deadline.
Will German, director of Help to Buy at Homes England commented: “We’re pleased we can help homebuyers with smaller deposits to own a home, at a time where there are fewer options open to them.
“Housing, like most sectors, has experienced a slowdown during the Covid-crisis. But Help to Buy continues to give homebuilders the confidence to keep on building at a more crucial time than ever.”
If you are interested in the existing Help to Buy Equity Loan Scheme (*) - or the new scheme that’s just been announced – and want to find out what your mortgage options might be, why not book an appointment with Embrace Financial Services today to gain their help?
(*) This Scheme ended on 28 February 2021.
Blog updated on 1 March 2021
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