The government is investing a further £10 billion to provide 135,000 new homes through the Help to Buy Equity Loan scheme.
More than 130,000 properties have already been sold through the scheme, which helps people buy a new build home with only a 5% deposit.
The new funding means that Help to Buy Equity Loan could help another 135,000 people by 2021. This would bring the total number of households across England that would be supported through the scheme to around 360,000.
Four out of five home purchases using the equity loan scheme have been made by first-time buyers, helping the total number of first-time buyers to increase by 70% between 2010 and 2016.
The equity loan scheme launched in April 2013 and funding has been committed until 2021. It works by the government providing an equity loan of up to 20% which is repaid when the home is sold, or after 25 years, whichever comes first.
Potential homeowners using the programme are subject to the normal affordability assessments undertaken by mortgage lenders. No interest or repayments are due during the first 5 years of the loan.
The Help to Buy Equity Loan can be used to purchase a new build property up to the value of £600,000, with a maximum equity loan of £120,000 (20%). In London, applicants can claim an equity loan up to 40% of the purchase price.
Please contact us if you would like advice about the legal aspects of buying or selling a home.