Posted in: Latest News, 15th January, 2021

New rules for Help to Buy

Applications open NOW for updated version of the hugely popular

Help to Buy scheme

Help to Buy Logo

Help to Buy has been one of the most successful incentives for helping people to purchase a home of their own.

The government-backed scheme is changing from the start of April 2021, with new criteria coming into force.

Anyone able to complete on a house purchase before March 31st 2021, the old rules will still apply – click here for details.

But for completions from April 1st 2021 the new version – Help to Buy: Equity Loan scheme 2021-2023 – comes into force and there will be two major changes.

  • It will only be available to First Time Buyers.

  • There will be a cap on the value of the property, based on regional average house prices (see table below).

How can I use Help to Buy

However, if you’re familiar with the original scheme you’ll see that a lot will stay the same.

  • It will still only be available for use on new build homes.

  • It will still require a 5% deposit from the homebuyer.

  • It will still offer a loan of up to 20% of the value of the property.

  • It will still allow homebuyers to secure mortgages of 75%.

  • It will still be interest free for the first 5 years.
Help to Buy Equity loan house infographic

What will this mean for our homebuyers?

Well in the North West the maximum property value will be £224,400

  • This will require a 5% Deposit = £11,200
  • H2B can provide a 20% loan = 44,800
  • And you’ll get a 75% mortgage = 168,300

Applications are already open for the new scheme.

Since it was launched in April 2013, Help to Buy has assisted with the purchase of almost 280,000 properties, with more than £16bn in loans given out on around £75bn-worth of properties*.

The vast majority of people utilising the scheme, 82%, have been First Time Buyers and the average property value was around £270,000.

Help to Buy: Equity Loan price caps (April 2021 to March 2023)

Region Maximum property price

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

London £600,000

South East £437,600

South West £349,000

For more information please read the government brochure regarding support for First Time Buyers purchasing a new build home in England: Help to Buy 2021-2023

Take a look at all of the Russell Homes properties currently available and contact our friendly sales team.

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