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
Skipton Building Society launches ‘Delayed Start’ mortgage meaning first time buyers won’t be required to make repayments for the first three months.
According to a survey by Skipton, first time buyers who bought their home in the last five years found that in the first three months of living there, they were spending upwards of £30,000.
Gardening Tips for Beginners
5 days ago
If you have recently moved into a property with a garden that requires a little TLC, or you’d like to get on top of your current green space, check out our tips.
The Family-Backed Mortgage from NatWest
8 days ago
High street lender, NatWest, have launched a new product to help first-time buyers purchase a property with assistance from a family member or friend to get them on the property ladder sooner.
‘Buy Now, Pay Later’ (BNPL) schemes, such as ‘Klarna’ are short-term loans that allow shoppers to make a purchase, but delay paying for it for an agreed amount of time.
Klarna is one of the most popular BNPL services with 18 million customers in the UK alone, and offers interest-free payment options which is appealing to shoppers. However, does it affect a mortgage application?
Buy to Let mortgages: what's happening?
14 days ago
We look at how to get the best Buy to Let mortgage rate, what's in store going forward, and options as a landlord with increasing costs.
UK mortgage rates following Trump’s Tariffs
23 days ago
Throughout this past week, lenders have continued to reduce their mortgage rates giving borrowers in the UK some welcome news following the change in global tariffs under US President, Donald Trump.
Effective ways to relieve stress
23 days ago
Did you know that buying a house, or relocating is in the top 10 most stressful life events?
Stress of course is an unavoidable part of life and there are many reasons why people experience stress, not just buying a house!
There are lots of effective ways to manage and reduce stress, check out our tips to help you.
With the stamp duty relief ending in England and Northern Ireland, we have listed the top 10 cheapest areas for first-time buyers as published by Rightmove.
More information
Trusted by
