What is Help to Buy?
With the Help to Buy Equity Loan scheme, as long as you’re buying a new-build home and meet eligibility criteria, in England and Wales the government may give you a loan of up to 20% of the property’s value to boost your deposit. All you have to do is pay a minimum deposit of 5%. If you're in Scotland, the government will give you up to 15%, and it's up to 40% if you're in London.
What are the differences between each country’s Help to Buy schemes?
England and Wales
In England and Wales, currently both First Time Buyers and existing homeowners can apply, and there are no equity loan interest fees to pay to the government for the first five years of owning your own home.
However, this will change in England when the current scheme comes to an end on 31 March 2021. The new Help to Buy Equity Loan (2021-2023) scheme in England will then run until 31 March 2023, and only First Time Buyers will be able to apply. The new scheme is already open for applications.
Currently, if you're buying a property in England under the Help to Buy scheme, the maximum property value allowed is £600,000. However, this is set to change when the new Help to Buy Equity Loan (2021-2023) scheme comes into place for completions on properties from 1 April 2021. For the new scheme in England, the maximum property price will be set regionally (see government website for more details).
With the current Welsh Help to Buy scheme, the maximum property value allowed is £300,000. However, from 1 April 2021, this will reduce to £250,000.
For more information on the schemes in England and Wales, please visit the government websites below.
Help to Buy for England
Help to Buy for Wales
The Scottish Help to Buy scheme is open to any First Time Buyers and existing homeowners as long as they are buying a new-build home, and no interest is payable for the lifetime of the equity loan. In all cases, you'll need to repay the loan in full, either after 25 years or when you sell your home, whichever is sooner.
If you want to buy a new build home using the Help to Buy scheme in Scotland, the property purchase price cannot be more than the threshold price which is currently £200,000 for 2020-21.
For more information on the scheme in Scotland, please visit the government website below.
Help to Buy for Scotland
If you need any more information about the range of Help to Buy mortgages we offer, we’re more than happy to help.