Government Schemes


Afford your dream new home throughout the UK

We know buying a property is more of a challenge than ever before, but there is support available for first-time buyers and existing homeowners through various Government initiatives, including the Help to Buy schemes.

As well as details about these schemes, New Homes Place brings you a comprehensive selection of the latest Help to Buy and Shared Ownership new-build properties to make it easier to find and eventually buy your own new home. 


Help to Buy England 

If you’re a first-time buyer looking to get onto the property ladder, or you own a home but want to step up to something bigger, you may qualify for the Government’s Help to Buy: Equity Loan scheme.

Requiring a minimum deposit of 5% to secure a 75% mortgage, with the Government lending the remaining 20%, the dream of owning your home can become a reality.

What you need to know

To be eligible for the Help to Buy: Equity Loan scheme, you must be looking to buy a new-build home that costs no more than £600,000.
At the time of buying your new home with a Help to Buy: Equity Loan, you must be over eighteen, not own any other property, nor be looking to rent out the new home purchased within the scheme.

How it works

The interest you pay on the equity loan works as follows:


Years 1 – 5
Interest-free
Year 6  
1.75% of the property value
Year 7 onwards
Increased in line with the Retail Prices Index plus 1%


If the property is sold or the mortgage comes to an end, the equity loan must be paid back.  It is paid back at 20% of the property price based on the value of the property at the time of the sale or mortgage completion.  

For more information about the Help to Buy: Equity Loan scheme in England, to apply for the scheme or find your local Help to Buy agent, visit the Government’s official Help to Buy website.
 
 
Help to Buy London


Buying a home in the capital is a challenge with current property prices.  To help you buy your first property or upsize to something bigger across any London borough, the Government has increased the Help to Buy: Equity Loan scheme’s limit from 20% to 40%.  

How it works

The scheme applies to new build homes that cost no more than £600,000.  Once you fund a 5% deposit on a home that meets the scheme criteria, the Government can lend up to 40% of the purchase price with the remaining balance secured by mortgage.  You will not be charged interest on the 40% equity loan for the first five years after buying your new home.

What you need to know

You will not be able to rent out your home purchased through the scheme, neither can you own any other property when you buy through the London Help to Buy scheme.

Once the mortgage comes to an end or you decide to sell the property, you will need to pay back the equity loan at 40% of the property value at the time of the sale or mortgage end.

For more information and details on applying for the London Help to Buy scheme, a variation of the main Help to Buy: Equity Loan scheme, visit the Government’s official Help to Buy website.


Help to Buy Wales

If you’re looking to get on the property ladder in Wales or finding it hard to afford a bigger property, you can get help buying a new-build home with a shared equity loan scheme from the Welsh Government.  

How it works

The scheme applies to new-build homes to the maximum value of £300,000.  You contribute only 5% of the property price by way of deposit, the Welsh Government will fund a shared equity loan for up to 20% of the property price, leaving you to secure a mortgage to cover the remaining balance.

What you need to know

Under the rules of the scheme, you will be ineligible if you already own a home and you will not be able to sub-let or rent out the home being purchased.
A small administration fee of £1 per month is charged once the shared equity loan is released.

The loan is interest-free until the sixth year of the plan when 1.75% per annum of the original shared equity loan is charged.  After this, the interest will increase in line with the Retail Prices Index, plus 1%.

For more information or to apply for the Help to Buy – Wales shared equity loan scheme, visit the official Welsh Government’s Help to Buy website.


Help to Buy Scotland

You can get help buying an affordable new build home in Scotland through the Help to Buy (Scotland) Affordable New Build Scheme, which runs until 31st March 2019.

How it works

A minimum deposit of as little as 5% of the property price is funded by you, with 80% secured by way of a repayment mortgage from a qualified lender, leaving a maximum equity stake of 15% taken by the Scottish Government to help you buy your property, providing you are eligible for the scheme.
   
What you need to know

There are threshold prices for the scheme which vary year on year up to 31st March 2018 and will determine property value and timescales of your purchase.
The Scottish Government do not charge interest on any equity stake and it can be repaid at any time, based on the value of the property at the time of repayment.

To get more information on the Help to Buy (Scotland) Affordable New Build Scheme, including eligibility and how to apply – visit the official mygov.scot website.  

Help to Buy ISA

If you feel like you’re forever saving for your first home to get on the property ladder, by saving into a Help to Buy: ISA, the Government will boost your savings by 25%.  

How it works

Available from a range of banks and building societies, once you open a Help to Buy: ISA account and save up to £200 a month, you will receive a Government bonus.  The minimum bonus is £400, awarded upon saving £1,600 in your Help to Buy: ISA account, and the maximum is £3,000, awarded once you have saved £12,000.  
   
What you need to know
The Help to Buy: ISA works per person rather than per household, so you and your partner can both save and receive the Government bonus.  The bonus is released when you are close to buying your first home and you give instruction to your solicitor or conveyancer to apply for it.  Once received, the bonus is added to the money you are putting towards your first home and is included with the consolidated funds at the time of completing your property transaction.

To get more information on the Help to Buy: ISA, find out if you are eligible and see a list of providers, visit the official Government Help to Buy website.


Lifetime ISA

If you are a first-time buyer, you can use a Lifetime ISA with a government bonus to help fund the purchase of your first home.  

How it works

You can save up to £4,000 per year into a Lifetime ISA putting the funds towards a home worth up to £450,000.  Each year the government will give you a 25% bonus on the total amount you pay into your account.  Funds from your ISA can be withdrawn at any time providing 12 months have passed since first saving into the account.  

What you need to know
To be eligible for a Lifetime ISA you must be between the ages of 18 and 39 and a UK resident.  You can use your savings to help you buy your first home, providing the property costs less than £450,000, you buy the property with a mortgage and use a conveyancer or solicitor to act for you in the purchase.
If buying a first home with a partner who also has a Lifetime ISA, they can use their savings and government bonus too.

Find out more about the government’s Lifetime ISA here.


Shared Ownership

Available through UK housing associations, Shared Ownership allows you the option to buy a share of your home (between 25% - 75% of the value) and pay rent on the remaining share.  

How it works

You will need a deposit of at least 10% of the share of the property you are buying, with a mortgage secured for the remainder of the share.  The housing association will charge rent on the share of the property you don’t own and as all Shared Ownership properties are Leasehold, there will most likely be annual service charges to pay.

What you need to know

To qualify for the Shared Ownership scheme, you need to be a first-time buyer, you might have previously owned a home but cannot afford a new one, or you are an existing shared home owner.  Your household income needs to be less than £80,000 per annum or if you are buying in London, less than £90,000.

To find properties and search for Shared Ownership mortgages across England, visit the Share to Buy website.
Different rules apply for Scotland, Wales and Northern Ireland, as follows:


Scotland – visit the Scottish Government’s website.  

Northern Ireland – visit the Co-Ownership Housing website.

Wales – you need to speak with the relevant Housing Association directly.