The UK government’s Help to Buy mortgage scheme has helped almost a quarter of a million homebuyers since its introduction in 2013.
The scheme, open to buyers of new homes in England and Wales, provides the buyer of a newly constructed home with a government equity loan of up to 20% of the property’s value (up to 40% in London), subject to a cap amount. This enables buyers to get into this market with as little as a 5% deposit.
The government had intended to abolish the scheme completely in 2023, but are now being asked to reconsider in the light of current events.
It is argued that the scheme, previously due to first be restricted to first-time buyers only in 2021, should remain in place to help support the new homes market and thus the nation’s housebuilding industry during and after the current Covid-19 crisis.
Many experts argue that the economy is going to need all the help it can get in the coming months. Furthermore, many home sales that might otherwise have been completed by now have, in some instances, been delayed by the challenges the ‘lockdown’ has brought to the process. This, coupled with current uncertainty, makes a strong argument amongst some for retaining buyer assistance, at least in the short term.
Related articles:
Download our Free First Time Buyers Guide
Recent posts
Forbes has published a global ranking of stunning locations and one popular picturesque corner of the UK has nabbed top spot.
Over three years after the Mini-Budget took place, we look at what the mortgage market looks like now, showing the difference in mortgage repayments.
The government has announced plans to make buying or selling a home cheaper and quicker with what is being called the “biggest shake-up to the homebuying system in this country’s history.”
More borrowers using equity release
23 days ago
Almost one in five equity release mortgages are now taken out to provide financial support to family.
Buyers purchasing properties sooner
25 days ago
According to industry data, the expected wait for those looking to buy a property has dropped from just over 11 months to less than six months.
It is common for your first mortgage payment to be higher than your subsequent monthly payments for two reasons.
What to do just before you get your keys
24 Sep 2025
Firstly, a big congratulations, you’ve now exchanged contracts! After weeks and months of waiting, you are about to move in. What should you do first?
The chancellor will deliver her second budget this autumn. Due to slow economic growth and high inflation, the government need to manage a £40 billion shortfall in public finances. There have already been reports about changes to taxes including income tax and capital gains tax.
More information
Trusted by
