New - Help to Buy 2021-2023

If you are a first time buyer, you could only need a 5% deposit to 100% own a new home

 

Help to Buy (2021 - 2023)*

The Government’s existing Help to Buy scheme will end in March 2021 in England and a new one, which will only be available to first-time buyers, will start on 1st April 2021. 

If you are a first time buyer the scheme will still allow you to purchase a property with a deposit of just 5% and a mortgage from a bank or building society. This means a maximum of 20% of the purchase price will be funded through an equity loan from the Government. 

The value of the equity loan available on new build properties will vary depending on where you live. The new regional price caps have been provided below and you can read more about the changes here.

 

The details of the scheme: 

Help to Buy (2021 - 2023)* is a Government-backed equity loan scheme which helps first time buyers to own a new build home. It means that home buyers can own a home with only a 5% deposit. The property purchased through Help to Buy must be your only residence and all purchasers must be able to prove that they have never previously owned a home.

Help to Buy (2021 - 2023)* offers up to a maximum of 20% of the purchase price through an equity loan funded by the Government. The remaining 80% is then made up through a 5% deposit contribution and a mortgage from a bank or building society.

Here's an example of how the equity loan scheme could work:

  • Based on a £180,000 purchase price
  • 5% Deposit £9,000
  • 75% Mortgage £135,000
  • 20% Help to Buy Equity Loan £36,000

The equity loan is available for first time buyers only, purchasing a new build properties in England. Regional Price caps for properties eligible for Help to Buy from 1 April 2021 to 31 March 2023 are:


North East                                 £186,100
North West                                £224,400
Yorkshire and the Humber        £228,100
East Midlands                           £261,900
West Midlands                          £255,600
East of England                        £407,400
London                                     £600,000
South East                                £437,600
South West                               £349,000

Further information on the equity loan and the repayments required is available in the Help to Buy* Buyers Guide.

Help to Buy (Scotland) Affordable New Build**

Help to Buy (Scotland) Affordable New Build** is a Scottish Government-backed scheme designed to help buyers to own a new build home. It means that home buyers in Scotland could own a home with as little as a 5% deposit. This initiative is available to all buyers, not just first time buyers.

With Help to Buy (Scotland) Affordable New Build**, the Scottish Government will contribute a maximum of 15% equity stake. The remaining 85% is made up through a 5% deposit contribution and an 80% mortgage from a bank or building society.

The assistance is available on new build properties up to a maximum value of £200,000 in Scotland, for completions taking place from 1st April 2017 up to 31st March 2022. The maximum value will now stay the same until 31st March 2022:

Scheme Year              Maximum Value

2020/21 & 2021/22     £200,000

Here's an example of the Help to Buy (Scotland) Affordable New Build** scheme:

  • Based on a £200,000 purchase price
  • 5% Deposit £10,000
  • 80% Mortgage £160,000
  • 15% Help to Buy Equity Stake £30,000

 

Terms and conditions:

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP THE REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT

*Help to Buy: Equity Loan (2021-23), England is available for First Time Buyers on properties up to the maximum value of the regional price caps below:

North East £186,100
North West £224,400
Yorkshire and the Humber £228,100
East Midlands £261,900
West Midlands £255,600
East of England £407,400
London £600,000
South East £437,600
South West £349,000

If you qualify for Help to Buy assistance and you raise a mortgage for at least 25% of the purchase price of your new home from a lender, you can borrow up to 20% of the purchase price by taking out a loan secured over your new home from the Government's Homes & Community Agency (trading as Homes England) over a period of 25 years. A 5% cash deposit is required at exchange. More may be required at completion depending upon circumstances and your lender's criteria. Help to Buy is subject to eligibility and terms and conditions. Homebuyers can find their Help to Buy agent at helptobuy.gov.uk.

The property purchased must be your only residence and you cannot have owned a home in the past. You cannot rent out your existing home and buy a second home through Help to Buy.

**Help to Buy (Scotland) Affordable New Build scheme is available on properties up to a maximum value of £200,000, that complete during the period 1st April 2017 to 31st March 2022. If you qualify for assistance and you raise a mortgage for at least 80% of the purchase price of your new home from a lender, you can borrow up to the remaining 15% of the purchase price by taking out a loan secured over your new home from the Scottish Government. A 5% deposit is required by the lender. More may be required depending upon circumstances and your lender's criteria. Help to Buy (Scotland) Affordable New Build assistance is subject to eligibility and terms and conditions.  

The property purchased must be your only residence. Help to Buy is not available to assist buy-to-let investors or those who will own any property other than their Help to Buy property after completing their purchase.You cannot rent out your existing home and buy a second home through Help to Buy.

Help to Buy

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Help to Buy Buyers Guide

Help to Buy Buyers Guide

Further information about the equity loan and the repayments required.

Find out more

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