Archive: How long until the Help to Buy Scheme ends?
(written on 19th August 2022) The new Help to Buy Equity Loan scheme was launched by the Government on 1st April 2021. If you are still thinking you might benefit from the scheme to buy your first home, you might be wondering when the Help to Buy scheme ends. And, whether you are eligible.
In this article, Adam Nanson, impartial mortgage broker at Your Mortgage Expert, discusses the key points you need to know.
Do I still have time to apply before the Help to Buy Scheme ends?
“The Government’s Help to Buy Equity loan scheme officially closes on 31st March 2023. However, new applicants must submit their application by 31st October 2022. Added to this, the property you are planning to move into, must be physically built by the end of 2022.
“It does not appear, at the moment at least, that the Government has any plans to launch a new scheme or to extend the current scheme. Which means, at the time of writing this article, there are only a few months left to apply.”
How do I know if I am eligible for the Help to Buy Equity Loan scheme?
“The rules for the new Help to Buy Equity Loan scheme are slightly different from the original Help to Buy Scheme that was launched 10 years ago.
“This scheme is designed for First Time Buyers over the age of 18. You must be purchasing a New Build property and you must be looking to live in that property (rather than renting it out). You’ll need to choose a repayment mortgage and have saved up at least 5% of the deposit for the property.
“As with the previous scheme, the government will lend homebuyers up to 20% of the cost of a newly built home, and up to 40% in London.”
Is there another option if I miss the deadline?
“If you are unable to apply before the Help to Buy Scheme ends, there are other options to help with affordability.
“One of the most popular schemes is the shared ownership scheme. With this, you own a share of the property with the Government owning the remaining share. Generally, your share will be between 25% and 75% of the property. And you will pay rent to the Government on the remaining share. We can advise on shared ownership of you think this might be suitable for you.
“The other schemes are Lifetime ISAs where you save money into a lifetime ISA. This money can then be used to purchase a property. Finally, there is the 95% mortgage guarantee scheme. Here the Government “underwrites” part of the mortgage in order to share the risk and means you only have to save a 5% deposit.”
How can Your Mortgage Expert Help?
By speaking to Your Mortgage Expert, you’ll get access to expert advice to help you work out whether the Help to Buy Equity Loan scheme is for you how much you can afford to borrow. We also have extensive knowledge of all the current Government schemes designed to give you a helping hand.
While online mortgage calculators can provide a good guide. We will take the time to fully go through your circumstances. We will let you know what your repayments would be and what type of mortgage is most suitable for your personal circumstances. And, if you need it, we can break down all the jargon so you understand whether to opt for a tracker mortgage, fixed rate mortgage or something more flexible.
Not only do we have access to the current deals on the market, some of which are not available directly. Having access to over 90 lenders will ultimately save you time. As you won’t have to search or contact each individual lender to compare the mortgage terms and rates. We will do all that for you.
We don’t charge for the initial consultation, so by speaking to us, you are under no obligation. So why not get in touch for expert first time buyer advice and take that first important step. We are based in Salisbury but can help you no matter where in the UK you live. We can carry out face to face meetings for those based locally. Alternatively, we can carry out the whole process remotely via the telephone, email or video call.