Imminent changes to the Help to Buy (HTB) equity loan scheme mean that house hunters in Plymouth now have less than a month to reserve their new-build home.
Getting on the property ladder depends largely on your current situation.
Most lenders will look at your income and outgoings, your credit rating, and a number of other factors before issuing a mortgage.
One of the main headaches – particularly for first-time buyers – is saving enough money for a deposit.
According to Dataloft, the average sales price of a property in Plymouth over the last 12 months was £198,995.
The minimum deposit that lenders will generally accept is 5% of the property value, while most will ask for at least 10%.
Brown Bear – six contemporary four-bed homes close to HM Naval base Devonport
What is Help to Buy?
The Government introduced Help to Buy (HTB) on April 1st, 2013.
The scheme is available to anyone over the age of 18 who wishes to buy a new-build property, providing they do not own another home in the UK or abroad and do not intend to rent it out.
As part of the scheme, the Government lends you up to 20% (rising to 40% in London) of the cost of your newly built home.
You then pay a deposit of 5% or more and arrange a mortgage of 25% or more to make up the rest.
No interest will be charged on the 20% loan for the first five years of owning your property.
Dudding Court – an historic building situated within the heart of the iconic Millfields site
How many people have used Help to Buy?
Since the launch of the Help to Buy (HTB) scheme, 272,852 properties were bought with an equity loan (up to and including March 31st, 2020).
According to the latest data from the Ministry of Housing, Communities & Local Government, the total value of these equity loans during that period was £16.05bn.
The value of the properties sold under the scheme total £73.28bn.
Most of the home purchases in HTB scheme were made by first-time buyers, accounting for 224,133 (82 per cent) of total purchases.
And the mean purchase price of a property bought under the scheme was £268,553, with buyers using a mean equity loan of £58,820.
Victoria Views – a selection of 24 unfurnished new homes apartments in Plymouth
What are the changes to the Help to Buy scheme?
The Help to Buy (HTB) scheme is due to end in its current form on March 31st, 2021, meaning that buyers will have to reserve their new build home by December 15th of this year.
From April 2021, only first-time buyers will be able to use HTB, and the current plan is to end it completely by 2023.
As part of the new scheme, the Government will set a regional property price cap to focus on helping those who need the scheme the most.
The regional cap in the South West is £349,000.
Matt Minett from our Land & New Homes team
I’m thinking of buying a new home in Plymouth – what are my options?
If you are looking to move into your new home, legal completion must take place before the end of 31st March 2021.
Here at Lang Town & Country, we are marketing several developments that are offering the Help to Buy Scheme including the following: