Can I Still Apply for a Help to Buy Mortgage in 2021?
The quick answer is yes. Help to buy is still an option until the end of March 2023. It’s a great government scheme that allows potential home buyers the chance to purchase a new build property when they have a lower deposit to put down. For first time buyers only, the government will lend you up to 20% of the purchase price of your newly built home (40% in London), you will only need a 5% cash deposit and up to a 75% (55% in London) mortgage to make up the rest. The amount you pay for a home depends on where in England you buy it and regional equity loan price caps are in place for this scheme ranging from £186,100 to £600,000.
Current Requirements for The Help to Buy Scheme
You must:
• be a first time buyer and not own any other property
• have a deposit of at least 5% of the purchase price
• reserve a new build home with a registered Help to Buy homebuilder
• arrange a repayment mortgage of at least 75% (55% in London) of the purchase price
• be able to afford the repayments on the equity loan, your repayment mortgage, and other outgoings
Help to Buy London?
As is often the case, things are a little different in London. Properties in the capital are much more expensive that in the rest of the UK so the scheme takes this into account. Whilst you may have thought that owning a property in London would be completely out of the question, you might change your mind.
The London Help to Buy scheme could make buying your own home more affordable.
Just a 5% deposit is required
- You only need a 55% mortgage
- 40% Government equity loan – interest free for the first 5 years
- Available on new build homes up to £600,000
- For new homes in the 32 London Boroughs & City of London
Can I get a Help to Buy ISA?
The Help to Buy ISA scheme is no longer available for new savers. However, if you already have a Help to Buy: ISA you can keep saving into your account until 30 November 2029 when accounts will close to additional contributions. You must claim your bonus by 1 December 2030.
There is certainly a lot to consider when it comes to buying a property but there is also a lot of financial help available. It often helps to talk to someone in the industry such as a mortgage adviser who can run through your options and answer any questions.
