The Clock Is Ticking For Wellingborough’s First Time Buyers

Since the Help to Buy equity loan was first introduced in 2013, it has helped more than 270,000 buyers find a home to call their own. While there had been extensions of the previous scheme in 2021, Homes England since announced that applications are open for buyers to apply for the new Help to Buy which will be available from April 2021 to 2023. Applications for the new Help to Buy scheme opened on Wednesday 16th December 2020, and will close at 6pm on Monday 31st October 2022.

How does Help to Buy work?

Help to Buy is a home ownership scheme which aims to help first time buyers onto the property ladder in England by providing an equity loan of up to 20% of the value of a new-build home.

As the government provides a loan (also known as shared equity) of up to 20% towards a home, a potential buyer only needs to raise a 5% deposit, with a 75% mortgage making up the rest. This makes the property ladder more accessible for first time buyers who may struggle to raise the large deposits that are usually needed on the open market.

While Help to Buy was previously available to all buyers who do not own another home and were purchasing a new-build property available through the scheme, the revised equity loan will only be open to first time buyers. The government has decided to introduce this change to ensure the scheme is assisting those who will benefit from it the most.

Alongside this, the new Help to Buy product enforces regional price limits. This will mean that buyers can only use the initiative to purchase a home costing no more than 1.5 times the average first time buyer property price in their region, for the East Midlands this is £261,900.

What is the new eligibility criteria for Help to Buy?

If you’re hoping to purchase through Help to Buy after the changes to the scheme, there are certain eligibility criteria that you will need to meet:

• You must be a first time buyer. This means that you cannot already own, or have owned previously, a property or residential land in the UK or abroad.
• If you are buying a property with another person, you must both meet the definition of a first time buyer to benefit from the scheme.
• While there is no minimum or maximum income brackets, you must be able to fund at least 80% of the purchase through a combination of deposit and mortgage.

How To Apply

Search online for new homes available to buy using Help to Buy. Look for the Help to Buy logo on homebuilders’ websites.

Reserve your home with the homebuilder and pay a reservation fee of no more than £500. This fee will be refunded if you’re not approved for an equity loan. Make sure the homebuilder gives you a signed copy of the reservation form. You’ll need it when you apply for the equity loan.

A Help to Buy agent will check if you’re eligible for the scheme. They will use the Help to Buy eligibility calculator tool to check your monthly income and outgoings, including household bills and estimated mortgage repayments. You can find a Help to Buy agent on the website at www.ownyourhome.gov.uk. If you’re eligible, the agent will be able to help you apply for the loan.Since the Help to Buy equity loan was first introduced in 2013, it has helped more than 270,000 buyers find a home to call their own. While there had been extensions of the previous scheme in 2021, Homes England since announced that applications are open for buyers to apply for the new Help to Buy which will be available from April 2021 to 2023. Applications for the new Help to Buy scheme opened on Wednesday 16th December 2020, and will close at 6pm on Monday 31st October 2022.

How does Help to Buy work?

Help to Buy is a home ownership scheme which aims to help first time buyers onto the property ladder in England by providing an equity loan of up to 20% of the value of a new-build home.

As the government provides a loan (also known as shared equity) of up to 20% towards a home, a potential buyer only needs to raise a 5% deposit, with a 75% mortgage making up the rest. This makes the property ladder more accessible for first time buyers who may struggle to raise the large deposits that are usually needed on the open market.

While Help to Buy was previously available to all buyers who do not own another home and were purchasing a new-build property available through the scheme, the revised equity loan will only be open to first time buyers. The government has decided to introduce this change to ensure the scheme is assisting those who will benefit from it the most.

Alongside this, the new Help to Buy product enforces regional price limits. This will mean that buyers can only use the initiative to purchase a home costing no more than 1.5 times the average first time buyer property price in their region, for the East Midlands this is £261,900.

What is the new eligibility criteria for Help to Buy?

If you’re hoping to purchase through Help to Buy after the changes to the scheme, there are certain eligibility criteria that you will need to meet:

• You must be a first time buyer. This means that you cannot already own, or have owned previously, a property or residential land in the UK or abroad.
• If you are buying a property with another person, you must both meet the definition of a first time buyer to benefit from the scheme.
• While there is no minimum or maximum income brackets, you must be able to fund at least 80% of the purchase through a combination of deposit and mortgage.

How To Apply

Search online for new homes available to buy using Help to Buy. Look for the Help to Buy logo on homebuilders’ websites.

Reserve your home with the homebuilder and pay a reservation fee of no more than £500. This fee will be refunded if you’re not approved for an equity loan. Make sure the homebuilder gives you a signed copy of the reservation form. You’ll need it when you apply for the equity loan.

A Help to Buy agent will check if you’re eligible for the scheme. They will use the Help to Buy eligibility calculator tool to check your monthly income and outgoings, including household bills and estimated mortgage repayments. You can find a Help to Buy agent on the website at www.ownyourhome.gov.uk. If you’re eligible, the agent will be able to help you apply for the loan.