Have you registered for Help to Buy?

Have you registered for Help to Buy?

16 November 2020

Did you know the deadline for Help to Buy: Equity Loan registration is 15 December?

Help to Buy: Equity Loan, the government scheme designed to help buyers purchase property for as little as a 5% deposit, is set to restructured this December.

New applications for the Help to Buy Scheme, which can be used in accordance with the government’s Stamp Duty holiday on most properties up to a value of £600,000, ends on 15 December.

Although applications end this December, to take advantage of both Help to Buy and the Stamp Duty Holiday, properties must be completed by 31 March 2021 to be eligible for the equity loan funding.

Previously, Help to Buy was only available for first time buyers seeking to gain access onto the housing ladder, but the UK government extended the scheme to stimulate activity in the housing market in the wake of Covid-19 during the Spring.

After the deadline of 1 April 2021, a new Help to Buy scheme for ‘first time buyers only’ replaces the current scheme.

If you’re planning to buy a new build home above what will be the new threshold of £437,600 outside of London, if you are not a first time buyer or if you simply want to benefit from the stamp duty holiday up until the end of March 2021, there’s no time to waste,” explains Jason Willets, Managing Director of Arun Land & New Homes.

 “You don’t have to be a first time buyer if your application is submitted by 15th December. However, the scheme is not available to investors or anyone owning second property.”

 HELP TO BUY TECH SPEC:

  • Currently available for new build properties up to £600,000 that have signed up to the scheme. This is reducing to £437,600 outside of London after 15th
  • 20% equity loan or 40% in London, interest free for 5 years and nothing else to pay i.e. no rent.
  • You don’t have to be first time buyer if your application is submitted by 15th Not available to investors or anyone owning second property.
  • You can put in more than 5% deposit. I.e. if you have 30% equity from previous property + 20% from HTB = 50% mortgage
  • Lender views whole deposit added together i.e. 5% deposit + 20% from HTB (interest free for 5 years) =75% loan to value mortgage and the related beneficial interest rates.

HOW TO REGISTER FOR HELP TO BUY GUIDE

  1. Find and reserve your home

Registered homebuilders advertise Help to Buy homes for sale on their developments. You must reserve your home and pay the fee of no more than £500 before you can apply for an equity loan.

 This fee is fully refundable if you’re not eligible for an equity loan or you don’t exchange contracts.

  1. Get professional advice

Help to Buy agents will help you to apply for an equity loan if you’re eligible and can afford the equity loan.

You must check that the equity loan meets your needs and that you can afford to repay it. Consider seeking independent advice to help you understand your financial situation. Your Help to Buy agent will guide you through our 4-stage buying process.

You can find your Help to Buy agent at www.helptobuy.gov.uk/equity-loan/find-helptobuy-agent.

If your equity loan is approved, your Help to Buy agent will give your conveyancer and homebuilder permission to proceed with buying your home