Help to Buy is changing – do not miss out!
Help to Buy is changing at the end of March 2021. To take full advantage of the scheme, make sure you know what is happening and when the changes are being implemented.
First introduced by the Government back in 2013, Help to Buy has helped more than 225,000 people buy a new-build home. A good number of those have been Larkfleet homes with Help to Buy Lincolnshire, and we have been proud to take part in a scheme that has helped so many individuals, couples and families secure their dream home.
Help to Buy allows both existing homeowners and first time buyers the opportunity to purchase a property worth up to £600,000 for just 5% deposit, with an additional Government-backed loan of up to 20%, interest free for five years. This is an ‘equity loan’, which means the repayable amount rises or falls with the home’s value, and is repaid when the home is sold.
If a buyer puts down a 5% deposit and receives a 20% loan from the Government, this leaves them to secure a 75% mortgage. There is a wide choice of competitive mortgage rates available under this scheme. Allowing homebuyers to put down a smaller deposit, the scheme’s aim is to help more people get on the property ladder, especially those who are struggling to save up for a deposit.
What is changing?
To date, the Help to Buy scheme has been available for existing homeowners as well as first-time buyers, but from next spring only first-time buyers will be eligible to apply.
The 2021 change will also include regional price caps on the value of the property you are able to buy. The ceiling price will vary from region to region, spanning £186,100 in the North East to £600,000 in London. You can find a full list of the regional caps on the Government website.
When are the changes coming into effect?
The new eligibility criteria will be applied from 1st April 2021. To use the existing scheme, you will need to purchase a property which is built by 28th February 2021 and legally complete on your home by 31st March 2021.
The good news is that we are here to guide you through the changes and at Larkfleet we have a great range of incentives available across all our developments. With now being the perfect time to buy, make sure you do not miss out and get in touch to discuss Help to Buy Lincolnshire.