Help to Buy

How does the new scheme work?

• The scheme will only be available for first time buyers, defined as those who haven’t previously owned or purchased a property.
• The scheme will introduce regional property price caps based on local markets, which will set the maximum price of a new build home that can be bought with Help to Buy in any region.
• The government will continue to lend buyers up to 20% of the cost of a new build property, up to 40% in London.

When will the new scheme run?

The current Help to Buy scheme will run until March 2021. A new scheme will operate from April 2021 until March 2023.

What are the regional property price caps?

Regional property price caps are being introduced to ensure the scheme is accessible to those who most need support to achieve home ownership.

• North East - £186,100
• North West - £224,400
• Yorkshire and The Humber - £228,100
• East Midlands - £261,900
• West Midlands - £255,600
• East of England - £407,400
• London - £600,000
• South East - £437,600
• South West - £349,000

Help to Buy: Equity Loan

You need a 5% deposit to buy a new Crest Nicholson home and a mortgage of only 75% of the value of your new home, with the remainder funded by a 20% equity loan from the Government. With the initiative available on properties in England up to the value of £600,000 the dream of home ownership is a reality.

To reflect the current property market in London, the government has increased the upper limit for the equity loan it gives new buyers within *London from 20% to 40%. This means you could buy a new home with a 40% equity loan, 55% mortgage and only 5% deposit on properties up to the value of £600,000.

*Applies to 32 London boroughs and the City of London

Help to Buy: ISA

Save up to £200 a month towards your first home with a Help to Buy: ISA and the Government will boost your savings by 25%. So for every £200 you save, you'll receive a Government bonus of £50.

How it works

• Help to Buy is available to all new homebuyers, not just first time buyers
• You only need a minimum 5% deposit
• The Government will lend you up to 20% (40% for properties in *London) of the value of your property through an equity loan
• 100% home ownership
• The loan can be repaid at any time or on the sale of your home
• You will only need to secure up to a 75% (55% for *London properties) mortgage from a bank or building society
• Only available on new build homes
• No interest on the loan amount for the first 5 years
• There is a maximum home purchase of £600,000 in England (including *London properties) and £300,000 in Wales.

*Applies to 32 London boroughs and the City of London

Breaking down the costs

Example: for a home with a £200,000 price tag

With London Help to Buy:

• you’ll need to contribute at least 5% of the property price as a deposit
• the Government will give you a loan for up to 40% of the price
• you’ll need a mortgage of up to 55% to cover the rest