News at Kings Estates | 18/10/2022

Applications close for the Help to Buy equity loan in England on 31st October, ahead of the scheme coming to an end on 31st March 2023.

The scheme was launched in 2013 for first-time buyers of new-build homes. Buyers who put down a deposit of at least 5% of the cost of the property can apply for a loan from the government of up to 20% to top up the deposit, or 40% if the home is in London.

After five years, interest will start to be charged on the loan, which is based on the rate of inflation at the time, plus 2%. The rest of the purchase price is then made up by getting a mortgage.

Can I still use the scheme if I’ve not started my home search yet?

Homes taking part in the scheme must be reserved before 6pm on 31st October, and built by the end of December. Buyers must have the keys to their new home no later than 6pm on 31st March, 2023.

Reservation fees are up to £500, which are refundable if the equity loan is not approved.

Homebuyers will also need to complete a Property Information Form before the deadline. There are different versions of the form, depending on where in the country you’re buying your home.

We have a brand new 2-bed apartment in the centre of town ready for occupation and priced at £300,000 taking part in this scheme, so if you would like to know more, then please get in touch straight away.