The Government’s existing Help to Buy Scheme will end on 31st March 2021. However, in an announcement late last week, the Ministry of Housing said that it would be extending some deadlines due to delays caused by the Coronavirus lockdown. Residential Consultant, Ross MacTaggart, explains what this means for buyers and developers across the UK.
When the UK locked-down at the end of March, new home construction came to a halt. While some sites reopened in late April, the majority did not resume work until May, and often with a reduced workforce to comply with social distancing policy.
These delays meant that many residential developments which were set to be complete in time to comply with the Help to Buy scheme build deadline of 31st December 2020, won’t be finished in time. Under increasing pressure from property developers, the Government have agreed to extend the property build deadline to 28th February 2021. However, the sale completion deadline of 31st March 2021 remains the same.
What if my purchase doesn’t complete in time?
For those that have experienced server delays for a property they reserved before 30th June 2020, don’t panic. Homes England will consider individual cases and can grant an extension, giving you till 31st May 2021 to complete. Besides this, there are no other planned extensions at this point.
Is the new Help to Buy Scheme still going ahead?
Yes, the “new” Help to Buy scheme will be replacing the current scheme, as planned on 1st April 2021 and will run until March 2023. However, key changes to the new Help to Buy mean that it will be now be restricted to first-time buyers, excluding home-movers, and that there will be regional property price caps to ensure it’s available to those who need it most.
The Government will still provide an equity loan of up to 20% (40% in London), with applicants only requiring a 5% deposit themselves. The Government equity loan will remain interest-free for the first five years, with the rest of the funds raised via a regular mortgage facility.
For more information on the Help to Buy Equity Loan, we recommend looking at the Government website. For more options on other schemes which can help you get on the property ladder (first-time buyer or not), read our previous blog on the subject.
If you’re looking for a way to finance your first home or your next move, our residential team will be more than happy to look at the options available to you and help you get the mortgage you need! Give them a call today on 0345 345 6788 or email email@example.com.
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