At The Good Estate Agent, we are keen to keep you fully informed with property and letting market changes which affect you. We know you are busy, and you don’t have enough time to stay in touch with issues which impact on your possible moves in the housing market.
We are pleased to say we have helped many buyers in the UK and We now bring our expertise to Peterborough, Stamford, Spalding and surrounding areas as we know the Help To Buy scheme has assisted many buyers. From April 2021, the Help To Buy scheme is changing, and this might be of interest to you.
Until the end of March 2021, Help To Buy is available to existing homeowners and first-time buyers. This scheme helps people purchase property with just a 5% deposit. However, when the change occurs in April 2021, Help To Buy will only be available to first-time buyers, and there will be new regional price caps in place.
These regional price caps will restrict the value of the property you can purchase.
The Help To Buy initiative is available for new build properties, and in England, there is a maximum value of £600,000 for properties to be eligible.
How Help To Buy works
The way Help To Buy works can be seen below:
- You provide a 5% deposit for the property you wish to buy
- There is an interest-free Government loan available up to 20% of the property you wish to buy (the loan is interest-free for the first five years)
- This leaves buyers requiring a 75% mortgage to buy a home
As an example, anyone looking to buy a home at £200,000 would have the following figures to aim for:
- A 5% deposit comes in at £10,000; so, this is the amount of money the buyer needs to save up when buying a home.
- With an interest-free Government loan of 20%, this amounts to £40,000
- Therefore, the mortgage required will cover 75% of the property price, and in this example, the buyer needs to arrange a mortgage of £150,000
The Help To Buy scheme makes arranging a mortgage more straightforward and more affordable.
We can help you with Help To Buy
If you are looking to take advantage of the Help To Buy scheme before the system changes, we can help you. You will be required to purchase a property that has been built by 31st December 2020, and the property purchase must be legally completed by 31st March 2021.
It might seem as though you have a lot of time to complete a purchase in line with the current scheme, and there is, but equally, it is best to be active sooner rather than later. We are highly experienced in the local property market, and we will ensure you comply with all requirements of the Help To Buy scheme.
Whatever your circumstances are, or what move you would like to make next; we are here for you. The Good Estate Agent prides itself on offering the best standard of service to our clients, and we work hard to help you achieve your property goals. If you would like to arrange an appointment or get more details on how we can help you sell your home, contact us today online or by calling us on 0330 223 0670.