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Help to Buy | Are You Ready For The Next Phase? | 2021

Help to Buy

Help to buyPrecise Mortgages

 

When Sir Winston Churchill was asked in 1942 how the war effort was going, he’s quoted as having replied: “This is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning.”

Borrowing Sir Winston’s words, the same sentiment applies to the Help to Buy Equity Loan scheme. After nearly eight years since its launch and financing over 278,000 new properties, changes are coming. From 1st April 2021, the scheme will enter a new phase, eventually closing in March 2023.

Starting 1st April, the existing Help to Buy Equity Loan Scheme (2013-2021) will be replaced. The new scheme (2021-2023) is available only to first-time buyers purchasing a new-build property. Moreover, regional property price caps will be introduced on that date. Each area will have a maximum property value eligible for the scheme.

Changes are necessary to support homebuyers in completing their purchase before funding ends on 31st March 2021. Therefore, we’re no longer accepting full mortgage applications for the scheme’s first phase.

As with the existing scheme, first-time buyers can still borrow up to 20% of the cost of a newly built home or 40% if they purchase in London. Buyers must pay a minimum of 5% deposit and then use a Help to Buy mortgage to fund the remaining cost of the property. connect for intermediaries

I must stress that this only applies to the Help to Buy Equity Loan scheme in England. The changes don’t apply to the Help to Buy Schemes in Scotland or Wales, and our existing 2-year and 5-year fixed-rate products will apply to all schemes. Look at our Help to Buy Product Guide for more information on our range, and download our ‘Right First Time’ checklist to ensure you’re sending us all the correct information when you submit your next case.

Credit: Kevin Beale, Specialist Distribution Manager – New Build, Precise Mortgages

 

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