If the Help to Buy scheme is part of your plan for homeownership, it’s time to get started.
The Help to Buy equity loan was initiated to help first-time buyers get onto the property ladder. When we wrote this blog, the prevailing wisdom was that you would have to complete your property purchase by 31 March 2023, so developers would likely only accept Help to Buy applications until December 2022. However, the deadlines have been decided. You now need to reserve your home and submit your application by 31 October, at 18:00. You will still need your purchase completed by 31 March 2023. There’s likely to be high demand for these properties in 2022, so some developers may sell out even sooner.
Diving right in? Scroll through our available Help to Buy properties here.
How it works
With this scheme, you just need a 5% deposit, and the government provides an equity loan of up to 40% (in London) towards the purchase of a qualifying newly built home. So your mortgage can be for as little as 55% of the purchase price. For the first five years, you will not be charged interest on the loan. On the fifth anniversary of your home completion, you’ll need to start paying interest at 1.75% on the equity loan, which rises annually based on the CPI (Consumer Price Index) rate of inflation, plus 2%.
For example, Acton Gardens is available with Help to Buy. This brand new development has modern 1 and 2 bed apartments with private balconies. There are communal gardens and play areas, great transport links, and the development is covered by an NHBC 10-year warranty.
1-2 bed apartments | Acton Gardens | Available with Help to Buy | £435,000-£660,000
For more information about this scheme, read our guide here, Help to Buy Scheme Explained.
Control the moving parts
It might seem like you’ve got loads of time. However, if you find any delays in mortgaging or conveyancing, you don’t want the extra anxiety of an impending deadline making it worse. Get in early, and prepare as much as you can in advance. When December comes, you’ll be thankful you did.
The best way to keep your property purchase on track is to get organised. Get in contact with a mortgage advisor early. We recommend Alexander Hall for expert insight and exclusive mortgage rates from some of the UK's biggest lenders, all explained clearly, without the jargon. You also need to get all your paperwork in order with a solicitor, and for that, we recommend Conveyan, an independent panel of London firms operating on a no sale, no legal fee basis. Get these two key elements sorted first, and when you find a place you want, you’re in the best position to move forward quickly.
You should also register with an agency who specialise in New Homes (with Foxtons, you can jump the queue), and let the Negotiator know what you’re looking for right away – you will need a UK developer who is registered with Homes England to be part of this scheme – so when it comes to the market, they can contact you directly. We have over 60 developments available with Help to Buy on the market, see our Help to Buy properties here.You can also find a full list of new builds available here.
