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    8 February 2021

    Help to Buy: Equity Loan scheme

    The Government has released a new incentive for First Time Buyers, being hailed as Help to Buy 2.0. They are designed to make it more affordable for people to own their own homes.

    The Help to Buy Equity Loan scheme will run from April 2021 to March 2023 and is now open for new applicants, ahead of its full launch in April 2021.  Under the new scheme, the government will lend buyers up to 20% of the cost of a newly built home and up to 40% in London interest free for five years.

    Below is a roundup of the new criteria, including regional price caps:-

    • The scheme will only be available to First Time Buyers;
    • Buyers must have at least 5% deposit of the purchase price.  However, there will be the option to borrow between 5%-20% (and 40% in London) from the new scheme;
    • The scheme is restricted to new build properties only;
    • The property must be lived in and not be let out;
    • The scheme includes regional property price caps, as detailed in the table below;
    Region Price cap for Help to Buy homes (April 2021 to March 2023)
    South East £437,000
    London £600,000
    South West £349,000
    East of England £407,400
    North East £186,100
    North West £224,400
    Yorkshire and The Humber £228,100
    West Midlands £255,600
    East Midlands £261,900
    • Applications are now open and buyers who reserve their home can move in as early as 1st April 2021, the official launch date.

    If you would like to take legal advice regarding buying and selling your home or would like to discuss any of the points raised in our ‘Help to Buy: Equity Loan scheme’ update, our specialist property team will be able to assist.  Please email realestate@steeleslaw.co.uk or call 01603 598000 and a member of the team will be happy to contact you.

    For more information on buying your first home, please see our Q&A article: Advice for house hunters: Q&A and to help you better understand the journey, we’ve detailed the various stages including what we will do for you to ensure that buying your home runs as smoothly as possible in our Buying a home guide.

    *The information provided in this article is designed to provide useful information on the subject, not to provide specific legal advice.

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