The new Help to Buy Scheme which will help first-time buyers take that first step onto the property ladder, has now opened for applications.
Whilst the new scheme keeps most of the features of the previous (2013-21), a new regional price limit means the cost of the new build property must not exceed 1.5 times the average first-time buyer price. The Government hopes that the limit will keep the prices of new homes closer to the regional first-time buyer average.
Eligibility
As with the previous scheme, to be eligible the property must be a new build. The buyer cannot own another property or have done so in the past and must not sub-let or rent it out after purchase.
The amounts remain the same, with the Government offering up to 20 per cent of the cost of the new build home (40 per cent in London). The remainder is made up by the buyers’ deposit of 5 per cent and the mortgage covering up to 75 per cent (or up to 55 per cent in London).
Buyers must apply through one of the Government’s Help to Buy agents and the new property must be purchased through a registered Help to Buy builder. A number of lenders have started to offer Help to Buy scheme mortgages for use under the new scheme.
More information about how to apply for the scheme can be found here.
