Afford your dream new home throughout the UK
Buying a property is incredibly challenging. However, there is support available for first-time buyers and existing homeowners when you buy a new home. Find out more about the different Government initiatives you can take advantage of, including details of the new Help to Buy scheme.
Once you’ve found the scheme that’s right for you, you can search our website for new homes available with Help to Buy or Shared Ownership across the country, here.
Help to Buy: Equity Loan
This is the new version of the former Help to Buy scheme which came to an end in 2021. The new Help to Buy scheme runs from 2021 – 2023 and is available to first-time buyers only, when buying a new-build home in England. The scheme is a government-backed equity loan which allows first-time buyers to buy their first home on one of the many new developments across the country.
How it works
You would need your own 5% deposit, but you could borrow up to 20% of the cost of a new home (40% in London) by way of a government equity loan. The amount borrowed is interest-free for five years. However, depending on where in the country you hope to buy your new home, there are regional price caps to be aware of.
South East - £437,600
London - £600,000
South West - £349,000
East of England - £407,400
West Midlands - £255,600
East Midlands - £261,900
Yorkshire & The Humber - £228,100
North West - £224,400
North East - £186,100
You will need a mortgage for the remainder of the property, once you have secured your deposit and equity loan which comes via Homes England.
You can only use the scheme if you are a first-time buyer, and you are buying a new-build home. The property must be your main residence and cannot be used towards the purchase of a second home.
Find out more about the Help to Buy: Equity Loan here.
Help to Buy Wales – Phase 3
From April 2021, Phase 3 of Help to Buy Wales will commence, running until March 2022. Under Phase 3, the homes available within the scheme will be capped at £250,000. All new homes offered under the scheme will need to have provision for high speed broadband, and developers will be required to meet an ‘excellent quality’ standard for build and finish.
How it works
The Welsh Government backed scheme provides a shared equity loan of up to 20% of the price of a new-build home in Wales, up to a figure of £250,000. Homebuyers will be required to fund at least 80% of the property sale price, which would be made up of a 5% cash deposit and a mortgage. The shared equity loan is interest-free for the first five years.
Find out more about Help to Buy Wales here.
Forces Help to Buy
The Forces Help to Buy (FHTB) Scheme runs until the end of December 2022. The scheme offers men and women in the armed forces the chance to get on the property ladder.
Service personnel can get an interest-free loan of up to 50% of their salary, capped at £250,000, which is repayable over ten years. FHTB can be used in conjunction with the government’s Help to Buy: Equity Loan scheme, which could reduce the need for a deposit.
The scheme is available on new build homes up to the value of £600,000.
Find out more about Forces Help to buy here.
The Mortgage Guarantee Scheme
Available from 19 April 2021, the mortgage guarantee scheme from the government is designed to help increase the availability of 95% loan-to-value mortgages from participating lenders to credit-worthy customers.
Following the withdrawal of 95% mortgages during the pandemic, the scheme is there to bring confidence to banks and lenders to offer 95% mortgages once again. Both new-build homes and existing properties up to the value of £600,000 are eligible under the scheme.
How will it work.
A repayment mortgage will be required, for between 91% and 95% of the value of the property. The government will guarantee the portion of the mortgage over 80%. That means if you get a 95% mortgage, the government will guarantee the remaining 15%, meaning they will partially compensate the lender if you were to default on (fail to pay) your mortgage.
The mortgage guarantee scheme will run until December 2022. Find out more about it here.