Changes to Help to Buy from 1st April 2021
The Government’s current Help to Buy scheme in England will end in March 2021 and a new one will be introduced. The new scheme will bring new changes which will affect who is eligbile to benefit.
Scheme details until March 2021
Until the end of March 2021, the Help to Buy Scheme will continue as it is today. This works whereby with a Help to Buy: Equity Loan the Government lends you up to 20% of the cost of your newly built home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest. You won’t be charged loan fees on the 20% loan for the first five years of owning your home.
The conditions of the current scheme are:
- It is open to all buyers seeking a new build home
- The maximum purchase price is £600,000
- The property purchased must be your only residence
- You cannot rent out your existing home and buy a second home through Help to Buy
House must have reached legal completion by 31st March 2021 to be able to use the current scheme. Owing to the times taken to go through the legal process of buying a houses, at Fellside Homes we are advising that all buyers wanting to use the old scheme begin the process of buying their new home by December 2020 so they have 3 months to complete the process.
Scheme details from April 2021
The scheme will work as per the above with a 20% Equity Loan from Government and you’ll need minimum 5% deposit and 75% mortgage. However, the scheme will become restricted to first-time buyers and includes regional property price caps to ensure the scheme reaches people who need it most.
Get in touch with us today if you would like to use the scheme before March 2021 to secure your new home. Fellside is a registered new homes provider who can offer the Help to Buy and it can be used on home on all our developments.