The government has said it plans to end the Help to Buy home ownership scheme in 2023.
This extends the current scheme for an additional two years during which the government will invest another £7.2bn in equity loans to homebuyers, but restricting the scheme to first-time buyers and cap the prices of the homes that can be bought.
From 2021 the value of homes bought using the scheme will be capped at £600,000 in London and in the regions at a price calculated as 1.5 times the average forecast regional first-time buyer price. This will amount to £427,600 in the South East but will come in as low as £186,100 in the North East.*
With the deadline now announced and only a few years left to help first time buyers, the clock is ticking to help those currently planning to get on the housing ladder while there is still a route to get assistance for probably the largest financial commitment people make in their lifetime – buying a house.
Brokers have an important role to play in helping first time buyers make the right choice for them well in advance of any purchase. Saving for a deposit and finding a new property that suits their work commute and lifestyle can take a lot of time, so planning well ahead is the only option for many.
Over the period since the launch of the Help to Buy Equity Loan scheme (1 April 2013 to 31 March 2019), 221,405 properties were bought with an equity loan. The total value of these equity loans was £12.46 billion, with the value of the properties sold under the scheme totalling £57.61 billion.**
This highlights an ongoing opportunity for brokers and lenders to work together to ensure that those first time buyers looking to benefit from a new home purchase get all the help they need, along with the right products to suit their mortgage requirements, before the scheme is scrapped.
At Leek United, we provide mortgages for first time buyers and those buying new build properties. Our criteria for new build houses and flats includes up to 95% LTV on Loans up to £400,000.
Our 95% products have no valuation fees, cashback and no product fees to make it easier and more affordable to get on the housing ladder and brokers can use our online affordability calculator to help make faster decisions.
Leek United provide a high level of service and individual underwriting to assist first time buyers purchase their dream home and remain committed to first time buyers and the Help to Buy while it’s still around.
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