We are thrilled to be working with an exceptional portfolio of developers with properties that are part of the Help to Buy Government initiative. The existing Help to Buy scheme will end on 31 March 2021. But home builders will have until 28 February 2021 to finish building homes. Most homebuyers must complete buying their home by 31 March 2021 to qualify for a Help to Buy: Equity Loan.
Some homebuyers will have more time to buy and move into their homes (and home builders to finish them) if they reserved it by 30 June 2020.
Help to buy – what is it and how it works!
Although the Help to buy initiative has been successfully running for a number of years. We know that many of you thinking about purchasing your first home will just be hearing about Help to buy. To help you understand the initiative in greater detail we have compiled the following information so that you can clearly understand each of the steps involved with Help to Buy.
The thinking behind Help to Buy Equity Loans is to give ‘all’ the opportunity to get on the property ladder or to up-size. The term ‘all’ in this case relates to qualifying purchasers. In order to understand Help to buy it is helpful to balance the scheme against the ‘standard way’ of financing a property purchase
When does a Help to buy Equity Loan apply?
- Help to Buy equity loans are only available on New Build Property purchases
- You are eligible for Help to Buy equity loan up to a purchase price of £600,000
- You do not have to be a First Time Buyer to qualify
- If the Property you are purchasing is in London, then you can obtain equity lending up to 40% of the purchase price
- For the rest of England and Wales, you can borrow up to 20%
- Help to Buy take up a security over the property by way of a second charge. What this means is that you will take out a Mortgage Offer.
Further details of all available purchase schemes and information on the above can all be found on the respective Help to Buy and Help to Buy Regional office websites.
Standard Procedure
- 10% deposit (minimum) required
- 90% Mortgage (borrowing)
Any additional costs to be paid by you.
Help to Buy
- 5% of the purchase price (using the same example as above, you will now be required to contribute only £12,000 + costs)
- 20% Help to Buy (England or Wales) or 40% Help to Buy (If the property is in London)
- 75% Mortgage (England or Wales) or 55% Mortgage (If the property is in London)
Help to Buy – London property
Any additional costs to be paid by you.
Help to Buy – England or Wales property
Any additional costs to be paid by you.
Help to buy – three key steps
- Authority to Proceed (ATP) – this is in effect your ‘Mortgage Offer equivalent’ for your Help to buy Equity loan. Once your application has been accepted there is approximately one week (working days) turn around.
- Authority to Exchange (ATE) – Once your ATP has been issued together with the Mortgage Offer, your Conveyancing Solicitor will request the Authority to Exchange from the relevant ‘Help to Buy Administrator’. Please note, your Solicitor will be unable to exchange contracts unless Help to Buy have authorised the exchange.
- Confirmation to Developer (CTD) – This is the final step; once contracts have exchanged and completion dates have been set, your Solicitor will be requesting this from your relevant Help to Buy Agent. You are unable to complete the transaction unless the CTD has been issued.
Deadline Information
The government has the following information to give clarity to the Help to Buy deadline and how this may impact on you.
Can I apply for the current scheme before it ends in March 2021?
Yes, if your home builder can complete the property so it’s ready to move into by 28 February 2021. You must also be able to legally complete the purchase and have the keys to move into your Help to Buy home by 31 March 2021. If you don’t complete by these dates you will not be able to get the equity loan funds. Please check with your builder and solicitor that you’re able to meet these dates.
I reserved my house by 30 June 2020, when do I need to complete my purchase?
If you reserved your home by 30 June 2020 you may be able to complete and have the keys to move into your home by 31 May 2021. This support is only for homebuyers experiencing severe delays due to COVID-19. Your home builder must be able to finish your home, so it is ready to move into by 30 April 2021. Please check with your builder and solicitor that you’re able to meet these dates to qualify for equity loan funds.
I reserved my house 1 July or later, when do I need to complete my purchase?
If you reserved your home on 1 July 2020 or later, you must legally complete your purchase and have the keys to move into your home by 31 March 2021. Your home builder must have finished your home so it’s ready to move into by 28 February 2021. If you don’t complete by these dates you will not be able to get the equity loan funds. Please check with your builder and solicitor that these dates can be met.
Buying your new home with Move Revolution
You are in safe hands with the Move Revolution team, with excellent customer service (900+ five star reviews) across all our in-house services your purchase will progress as smoothly as possible. You will have your own Sales Progressor dedicated to the purchase of your home. We will also recommend solicitors who also offer excellent service – demonstrated first hand over working with our clients.
This seems the perfect time to share a selection of our incredible help to buy portfolio. At present we are experiencing exceptionally high demand for properties, if one of these ‘showcased’ properties has sold, just give us a call to find out about our full range or click here to see our complete property portfolio
We thought you would love to see a selection of our stunning help to buy properties.
If you would like to find out more about our current Help to Buy portfolio just call 0330 223 1000, with offices throughout Surrey, Sussex, Kent and South London we will put you through to the right Move Revolution office for you.