Fri 14 Oct 2022
Applications set to close for Help to Buy loans in England
Applications close for the Help to Buy equity loan in England on 31st October, ahead of the scheme coming to an end on 31 March, 2023.
The scheme was launched in 2013 for first-time buyers of new-build homes. Buyers who put down a deposit of at least 5% of the cost of the property can apply for a loan from the government of up to 20% to top up the deposit, or 40% if the home is in London.
After five years, interest will start to be charged on the loan, which is based on the rate of inflation at the time, plus 2%. The rest of the purchase price is then made up by getting a mortgage.
Can I still use the scheme if I’ve not started my home search yet?
Homes taking part in the scheme must be reserved before 6pm on 31st October, and built by the end of December. Buyers must have the keys to their new home no later than 6pm on 31st March, 2023.
Reservation fees are up to £500, which are refundable if the equity loan is not approved.
Homebuyers will also need to complete a Property Information Form before the deadline. There are different versions of the form, depending on where in the country you’re buying your home.
Mark Powell, Group Sales & Marketing Director, says: “We must emphasise to people entering the process for the first time that completing the necessary checks and financial steps can take a few months, so while March feels a long way off, in ‘moving home terms’ it really isn’t. Start the process now, do your research and talk to our sales teams who are there to help, so you can make fully informed decisions about your move.”
Are there Help to Buy schemes in Wales and Scotland?
Wales has its own Help to Buy scheme, which offers shared-equity loans of up to 20% to buyers of new-build homes. You can still apply for this scheme between now and the end of March, 2023. The Help to Buy Scotland scheme has already closed.
And what about Help to Buy ISAs?
The deadline to open a new Help to Buy ISA has already passed. However, anyone with an account already open can continue adding up to £200 per month until the end of November, 2029. And you can still claim the government bonus (currently 25% on savings up to £12,000) up until 1st December, 2030.
A Lifetime ISA is another option for those aged between 18 and 40. You can save up to £4,000 a year, and the government will top up the saved amount with a 25% bonus, which is capped at £1,000 per year. Like the Help to Buy ISA, you’re able to withdraw the funds to purchase your first home.
Take a look at these homes taking part in the Help to Buy Equity Loan scheme
Original article - Rightmove
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