April 2013 saw the launch of the Governments Help to Buy scheme, a scheme launched to assist homebuyers by offering an equity loan interest free for the first five years of home ownership.
The current scheme is available to both first-time buyers and homeowners, providing more affordable options to get onto or move up the property ladder. Homebuyers can receive a loan of up to 20 per cent of the cost of a newly-built home or 40 per cent in London, providing they have a five per cent cash deposit and a 75 per cent mortgage to make up the remaining costs.
The current Help to Buy scheme is set to be replaced by a new scheme on 1st April 2021. The new scheme will be exclusive to first time buyers only and will have different price caps to the original scheme. Current homeowners can still take advantage of this scheme providing purchase us completed by March 31st 2021.
Amanda Collison, senior researcher at Property Market Index, said: “Homeowners should act fast if they wish to utilise the current Help to Buy scheme for their move, especially those who are considering homes with a house price of up to £600,000 outside of London. The new scheme will involve lowering the price threshold to between £186,100 and £437,000 outside of London”.
Further information can be found on the Governments website.