The Help to Buy Scheme is Changing
Here is what you need to know…
The Help to Buy (HTB) scheme has helped support around 300,000 people step onto the property ladder since it began.
From 1st April 2021, the scheme is set to change.
How is the Help to Buy Scheme Changing?
Help to buy applications approved by 15th December 2020 will have until 31st May 2021 to complete under the original scheme.
In England, from April 1st, new price caps are being introduced and the scheme will only be available to first-time buyers. The maximum purchase price in the West Midlands is £225,600
In England, the loan is interest-free for 5 years and buyers are required to start paying interest on the loan after this period. It is possible to repay all, or part of the loan at any time, subject to conditions.
How Does it Work?
Buyers will need to be able to provide a minimum 5% deposit and be eligible for the low-interest government-backed loan of between 5% and 20% of the value of a new-build home (up to 40% if purchasing in London).
Buyers require a mortgage to cover the remaining amount (75% or less) and the home must be purchased from a registered house builder.
If you have any further questions about this please feel free to get in touch with The Mortgage Mom today!