Help to Buy is a scheme launched by government in 2013, which significantly lowers the barrier for entry to the housing market, so much so that in 2020 First Time Buyers accounted for half of all homes purchased with a mortgage. You can get a low-interest loan towards your deposit, to help you get on the property ladder.
Interest free loan for 5 years
Property will be completing in the next 6 months
Only available to first time buyer owner occupiers
For a property up to 600,000: Up to 40% equity loan from the Government with just a 5% deposit.
If you are a first time buyer that has never owned a property/land ever, Help to Buy London is a government scheme designed to help you.
The property you buy must:
be a new build
have a purchase price of up to £600,000, subject to regional price caps
be the only one you own
not be sub-let or rented out after you buy it
no maximum income
Help to Buy is an equity loan from the government up to 40% of the value of a property, provided you have a deposit of 5% you will only need a mortgage of 55% of your new home.
You will only need a 5% deposit.
As you're taking out a smaller mortgage, it will be easier for you to prove to lenders that you can afford the monthly mortgage repayments
Borrowing a smaller proportion of the property's value from a mortgage lender gives you access to better mortgage rates.
Help to Buy (HtB) is scheduled to end in April 2023 after eight years of helping people purchase newly built homes.
The scheme has been extended from April 2021 to the end of March 2023. However, there are some changes.
It will only be available to first-time buyers – not existing homeowners – plus a range of regional price caps will come into force in England, which may lower the maximum purchase cost of a property bought via the scheme.
These new price caps are:
In London the price cap remains at £600,000
South-East England price caps will change to £437,600
East of England price caps will change to £407,400
All purchasers involved must not currently, or have ever, owned a home or land either in the UK or abroad. This is a change from the previous scheme where purchasers may have owned a home in the past.
All Help to Buy homebuilders must have agreed to sign up to the New Homes Ombudsman. This Ombudsman supports buyers in resolving, or being compensated for, poor building work and enforces higher building standards. This Ombudsman scheme is launching in 2021.
Homebuilders are not allowed to charge ground rent on new Help to Buy homes. Also, Interest paid on the loan in Year 6 has changed from RPI plus 1% to CPI plus 2%.
What is the difference between Help to Buy and Help to Buy London?
Help to Buy London give a maximum of 40% equity loan and is only applicable in the 32 London Boroughs, for everywhere else it is a maximum of 20% equity loan.
Help to Buy isn't the only scheme in place to help people buy in the capital. Shared ownership is a very popular alternative. With this scheme, you can buy a share of 25%-75% in a property and pay rent on the rest.
New Market place, East ham: https://www.sardarhomesuk.com/project_details?details=MTEx
Millbrook Park, Mill Hill: https://www.sardarhomesuk.com/project_details?details=MTEz
Eastman Village, Harrow: https://www.sardarhomesuk.com/project_details?details=MTEy
Upton Gardens, Upton Park: https://www.sardarhomesuk.com/project_details?details=MTEw
Hayes Village: https://www.sardarhomesuk.com/project_details?details=MTA5
High Street Quarter, Hounslow: https://www.sardarhomesuk.com/project_details?details=MTAz
No 10. Watkin Road, Wembley: https://www.sardarhomesuk.com/project_details?details=MTAy
Hendon Waterside: https://www.sardarhomesuk.com/project_details?details=MTAx
