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The New Help To Buy Scheme For First Time Buyers Starts Today

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The New Help To Buy Scheme For First Time Buyers Starts Today

The government's Help To Buy scheme begins today, aiming to get first time buyers in the UK on the property ladder.

Applications for the Help to Buy: Equity Loan scheme are now open, meaning first time buyers interested in new build homes could borrow up to 20 per cent of the cost of the property, or even 40 per cent in London.

Buyers could borrow up to 20 per cent of the cost of the property, or even 40 per cent in London (Credit: PA)
Buyers could borrow up to 20 per cent of the cost of the property, or even 40 per cent in London (Credit: PA)

Buyers would be required to put down a deposit of at least five per cent (or more) and arrange a mortgage of 25 per cent or higher to make up the remaining amount.

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To be eligible, the house must be a new build and worth up to £600,000. Homebuyers are also advised to be able to afford the monthly fee and interest payments, not own any property previously, and cannot sublet or rent out the property after they've bought it.

The scheme will cover the period of 2021-2023.

The scheme will cover the period of 2021-2023 (Credit: Shutterstock)
The scheme will cover the period of 2021-2023 (Credit: Shutterstock)

Speaking about the new scheme, Housing Secretary Robert Jenrick said: "The Government is providing more ways to help families onto the housing ladder, and provide that life-changing moment when you get the keys to your own home.

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"Alongside First Homes, Shared Ownership and our £12bn investment in affordable housing, our new Help to Buy scheme will help thousands more families take their first step into a home of their own."

Will German, director of Help to Buy at Homes England, added: "Help to Buy has already helped more than 270,000 people into home ownership and 82% are first-time buyers. The new Help to Buy builds on this success with first-time buyers in front of mind.

"We're pleased we can help homebuyers with smaller deposits to own a home, at a time where there are fewer options open to them. Housing, like most sectors, has experienced a slowdown during the Covid crisis. But Help to Buy continues to give homebuilders the confidence to keep on building at a more crucial time than ever."

Buyers can officially move in from 1st April 2021 (Credit: Pexels)
Buyers can officially move in from 1st April 2021 (Credit: Pexels)
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From today, buyers will be able to apply for their new build property and can officially move in from 1st April 2021.

Featured Image Credit: PA

Lucy Devine
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