Posted on 01st August, 2020

Government Extends Help To Buy Scheme

By Emily O'Donoghue

The government have announced the extension of its Help to Buy scheme by two months.

The extension means that thousands of families can still benefit from the current scheme, despite delays in building their new homes due to coronavirus.

The deadline for the homes to be finished in order to comply with the equity loan scheme was previously at the end of this year.

It has now been extended to 28th February 2021 to ensure house purchasers do not miss out due to the unforeseen circumstances surrounding COVID-19.

The Help to Buy Scheme lets buyers purchase a new build home with a deposit of as little as 5%.

It was first launched back in 2013 and has since helped over 250,000 households buy a new-build home.

What is Help to Buy?

The government launched the Help to Buy equity loan scheme to make it easier to first-time buyers to get onto the property ladder.

It is also available to existing homeowners looking to purchase a new build property.

With the government funding a portion of a property’s value, buyers can secure a mortgage with a smaller deposit and will not need to borrow as much from a lender, opening the door to favourable rates and lower monthly repayments.

Save and borrow less – You will only need a 5% deposit and 75% mortgage to secure your dream home.

Government-backed – The government will fund up to 20% of the value of your property with an equity loan.

Flexible repayment – The loan is interest-free for five years and can be repaid at any time without penalty, or upon the sale of your new home.

Who is eligible?

  • The Help to Buy equity loan scheme is available to first-time buyers and homeowners looking to move.
  • The home your wish to buy must be newly built and have a maximum purchase price of £600,000.
  • The home must be your only residence.
  • The scheme is not available to buy-to-let investors or anyone who will own other property after completion.