Help to Buy is changing
What you need to know
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.
The scheme will still allow you to purchase a property with a deposit of just 5% and a 75% 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.
New Help to Buy regional price caps
Regional Price caps for properties eligible for Help to Buy from April 2021 to March 2023
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
South East £437,600
South West £349,000
You could still be eligible to use the current Help to Buy scheme should you complete on your new home before 31st March 2021 and are a new or existing home owner.
Here's an example of how the equity loan scheme works:
- Based on a £180,000 purchase price
- 5% Deposit £9,000
- 75% Mortgage £135,000
- 20% Help to Buy Equity Loan £36,000
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP THE REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.