New Build Schemes for First Time Buyers
In the 2018 budget, Chancellor Philip Hammond announced that the Help to Buy scheme would close in March 2023. We are getting very close to that date. He also said that the Government does not intend to introduce a further Help to Buy Equity Loan scheme after March 2023*.
Consequently, approximately 205 thousand new houses will be completed by the end of the year.
The Help to Buy: Equity Loan (2021-2023) is the perfect opportunity for first-time buyers! Regional property price limits are in place, meaning those who need it most can take advantage of this scheme. For all homebuyers looking to reserve their homes and apply for the loan, you will have until 6 pm on 31 October 2022 – providing ample time before the closing date of March 2023. Don’t miss out; now’s your chance to make a life-changing purchase easily!
It’s time to make your move – especially with the clock ticking on the Help to Buy: Equity Loan scheme. It might sound like a bit of a mouthful, but it’s really quite simple. If you’re looking for your dream home and want some help getting there, this scheme could be just what you need.
The Government’s new Help to Buy Equity Loan Scheme now includes regional property price limits (see below) to ensure it reaches people who need it most.
As with the previous scheme, first-time home buyers can borrow up to 20% of the cost of a new build and up to 40% in London.
How does the First Homes Scheme work?
To qualify for the First Homes Scheme, you must be a first-time buyer. You need to purchase a new build home from a developer involved in the scheme. Alternatively, you can buy a property from someone who bought through the scheme and is now selling it. The seller must pass on the same discount they initially received to you.
Financially, you should afford at least 50% of the mortgage required for the purchase price. Moreover, your household income must not exceed £80,000 outside London or £90,000 within London. After the discount, the property value must stay under £420,000 in London or £250,000 elsewhere in England.
After finding a suitable property, contact the developer to start the application process. The developer will guide you through applying for the First Homes Scheme. Your application is then sent to the local council for approval. Once approved, you will follow the standard home-buying steps. This includes hiring a conveyancer, applying for a mortgage, and preparing the necessary documents. After exchanging contracts and completing the purchase, your new home is yours to enjoy.
The First Homes Scheme offers affordable housing to first-time buyers. It enables them to buy a new build property at a reduced price. This scheme helps you achieve your dream of homeownership with significant savings.
Property Price Limits
The new scheme now has price limits on homes you can buy with an equity loan. The limit is different for each region in England.
East
London
North East
North West
South East
South West
East Midlands
West Midlands
Yorkshire and The Humber
£407,400
£600,000
£186,100
£224,400
£437,600
£349,000
£261,900
£255,600
£228,100
House builder-assisted Incentives up to 5% (Depending on lender criteria)
House builder incentives often involve financial support for buying a property. For example, builders might cover a portion of the deposit. They could also offer various forms of financial assistance to lower upfront costs.
However, the availability and terms of these incentives can differ widely. They often depend on the specific house builder or lender. Some incentives may link to particular mortgage products or financial arrangements. Others might require buyers to meet specific eligibility criteria.
When exploring house builder incentives, it is essential to review the terms and conditions carefully. Understand any potential obligations or restrictions linked to accepting the incentive. Ensure that these offers align with your long-term financial goals and affordability.
Seeking advice from a mortgage advisor or financial expert is advisable. They can provide guidance on available incentives and assess their suitability for your situation. They can also help you compare different offers from various builders and lenders, aiding in informed decisions.
House-builder incentives can provide significant financial support to homebuyers. They might offer up to 5% of the property’s value. However, it’s crucial to understand the terms and seek professional advice thoroughly. Ensure that the incentive aligns with your financial goals before committing.
Better deals for Newly Qualified Professionals
The criteria are changing because some lenders offer better deals for Newly Qualified Professionals (NPQ). Certain lenders have reduced the minimum income for NPQ from £40k to £30k. This change enables us to approve more first-time property buyers.
Eligible customers choosing our NQP products can benefit from higher income multiples, up to 5.5 times. Lenders now offer fixed-term rates extending beyond the usual 5 years. You can secure fixed terms ranging from 10 to 25 years.
With these ongoing developments, we remain at the forefront of the industry. We take pride in providing you with the latest updates.
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