Help to buy equity loan explained 2020 | What you need to know for 2021

Introduction

The Help to Buy equity loan scheme is a fantastic initiative. It has supported both first-time buyers and home movers in purchasing their dream homes with just a 5% deposit, on properties worth up to £600,000.

However, this scheme is coming to an end and will be replaced by a new scheme starting 1st April 2021.

Key Deadline

If you want to benefit from the current scheme, you must submit your application on or before 15th December 2020. This is a strict deadline set by Help to Buy.

Main Advantages of the Current Scheme

1. No Regional Cap

   Under the current scheme, you can buy a property worth up to £600,000 anywhere in England.

   From 1st April 2021, this will change:

   • In London, you will still be able to buy a property worth up to £600,000.
   • Outside London, regional caps will apply, which may affect buyers wanting more expensive properties.
2. Open to Home Movers

   At present, both first-time buyers and home movers can use the scheme.

   From 1st April 2021, the new scheme will be open only to first-time buyers.

   This means home movers must apply before the 15th December 2020 deadline to take advantage of the scheme.

Final Note

If you are a home mover or a buyer looking outside London, act quickly to avoid missing out on the benefits of the current Help to Buy scheme.