Help to Buy loan scheme ends
The Help to Buy equity loan scheme closed to new applicants on Monday 31 October 2022. The scheme ends on Friday 31 March 2023. If you're a first-time buyer looking for ways to buy you still have choice. Find out more…
The Help to Buy loan scheme ends. What next?
Since its launch in 2013 the Government’s Help to Buy scheme has enabled many people to take those first steps on the property ladder.
The scheme closed to new applications on 31 October 2022.
If you're in the process of buying your home using the Help to Buy scheme then your home must be built and ready to live in, with a new-home warranty/building regulations certificate, by the extended deadline of 31 January 2023. The whole scheme ends on 31 March 2023, the legal completion deadline.
What options are there for first-time buyers after Help to Buy ends?
There are choices available to first-time buyers, although there's no direct replacement for the Help to Buy equity loan scheme.
Shared ownership
An option worth considering for prospective first-time buyers is the shared ownership scheme. It's an option for anyone who find themselves unable to afford properties on the open market. Buyers purchase a share of a new-build property and rent the remaining share from a landlord or housing provider. As a part-owner, you’ll only pay a mortgage for the part of the property you own. You'll only need a 5% deposit of that share value as well, which makes raising the funds to get you started more achievable. You can increase your share of the property over time, using a process called staircasing.
Latimer's shared ownership availability
Lifetime ISA (LISA)
A replacement for the Help to Buy ISA has been introduced. The Lifetime ISA (LISA) offers account holders the potential of a 25% bonus on their savings every time they pay in.
Lifetime ISA benefits:
- lDeposit more each year, over a longer timeframe.
- Larger potential bonus.
- Up to £1,000 payable every year for up to 32 years.
First Homes
The Government is currently running a pilot of a First Homes scheme. It offers new-build homes to first-time buyers discounted by at least 30% compared to market value. The discount is passed on to future sales. There are conditions around the maximum value of the property (£250,000, or £420,000 in London) and the annual household income of the buyers (below £90,000).