The Help to Buy scheme (HTB) has been popular amongst home buyers with approximately 60% of new homes being purchased at the beginning of 2019 using the assistance of the HTB scheme. The scheme was available to help first time buyers and home movers get onto the property ladder.
However, in 2019 the government decided to change this by only allowing first time buyers to use the scheme starting from April 2021.
The deadline for completion for homes using the HTB scheme has now been extended to the 31st of May 2021. This is to make sure that people can still benefit from the scheme if there’s been any delay in the construction due to Covid-19. The government’s intention from the latest amendment is to support the home movers and first-time buyers to secure a home despite the impact of the corona pandemic.
The pandemic has caused considerable delays risking approximately 16,000 sales. According to ‘Homes of England’ there were 16,691 sales which were waiting to be completed under the current scheme. Self-isolation of construction workers, delays in supply lines, the traders who had to be on furlough are some of the reasons for these delays.
find me a mortgageThe Government has considered the risk that the buyers will have to face if their properties are not built on time and decided to give this extension to help those people complete in time. This means the developers have until the 31/05/2021 to complete their developments now.
This news will be a relief to most of the people who deal with new builds in the industry including the buyers, developers, lenders, solicitors, mortgage brokers etc.
However, the Government has not yet decided whether they are extending the stamp duty holiday which is still set to end by 31st March 2021. Buyers will have to wait till 3rd of March to know more regarding that. It’s always a great idea to talk to an expert to get a proper understanding of how to take advantage of all the opportunities relating to mortgages. For a recommendation on the best lender and deal for you based on your circumstances, why not contact us on 02030111986.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up the mortgage repayments.
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