The changes to Help to Buy
In April 2021, the government backed Help to Buy scheme will change. The new scheme will be available exclusively for first time buyers, so it is important to keep this in mind when looking for your dream Gleeson home.
In short, the Help to Buy scheme will be replaced with a new scheme aimed at first time buyers only, the existing scheme, which is also available for existing homeowners, will end on the 31st March 2021.
Many of the great existing Help to Buy benefits will remain:
· 5% minimum deposit for your new home
· Your Help to By Equity Loan can cover up to 20% of the value of your new home
· Your loan is interest-free for up to five years
For example, with 5% of your property funded by your deposit, 20% funded by the Help to Buy scheme, the remaining 75% of costs are covered by your mortgage.
Currently the government allows Help to Buy to be used on any property up to the value of £600,000 regardless of where you live in the UK, however, the main change to be aware of is that regional price caps will now determine how much you can borrow. Split into, the North East, North West, Yorkshire and the Humber, East Midlands, West Midlands, East of England, London, South East and South West the caps where our brilliant developments are located are as follows:
- North East – capped at £186,000
- North West (including Cumbria) – capped at £224,400
- Yorkshire & Humber (including East Yorkshire) – capped at £228,100
- East Midlands – capped at £261,900
- West Midlands (including Staffordshire) – capped at £255,600
Alike to the existing scheme, there will be no household annual income limit and you can repay your Help to Buy loan at any time, whether that be the end of its term or if you sell your home and move to pastures new.
Existing homeowners are still eligible to use Help to Buy, providing your legal completion date falls before the 31st of March 2021.
It may sound complicated, but it is much easier than you think. We have an expert sales team and friends over at Meridian Mortgages who will be able to assist you every step of the way. With 62% of our customers using the Help to Buy scheme to secure their new Gleeson home, we understand how important the scheme is in getting you on the property ladder.
With developments across the North and the Midlands, our stunning, high-quality and affordable 2, 3 and 4 bedroom semi and detached homes are ideal for first time buyers and key workers wanting to take their first steps on the property ladder and become part of local communities. Prices start from as low as £97,995. Start your journey here.