First-time homebuyers and developers will welcome launch of a new version of the government’s Help to Buy: Equity Loan scheme, to run from 1 April 2021 to 31 March 2023.
The new scheme allows homebuyers to borrow up to 20% (or 40% in London) of the purchase price of their intended home, interest free for five years, provided:
- It is a new-build home.
- They provide a deposit of at least 5% of the purchase price themselves.
Interest will be charged at the end of the initial 5 year period and rates start at 1.75% rising annually thereafter. The new scheme is only available to first-time buyers, and the amount of the loan is now subject to a cap which varies region by region, with the lowest cap being £186,100 in the North East and the highest cap being £600,000 in London.
First-time homebuyers who meet affordability and lending terms can now plan house and flat purchases from 1 April 2021 and developers can plan the marketing of new-build developments confident of the terms that will apply under the new scheme.
CONTACT US
Speak to a knowledgeable and experienced house conveyancing solicitor today by contacting Ramsdens Solicitors. Either call us on 01484 821 500 or complete our online enquiry form and we will contact you at a time that is suitable for you.
BY LINDSEY FRITH
November 12, 2020
Lindsey is a Solicitor and Partner and Heads the Residential Conveyancing department.