30th August 2020
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Originally started in 2013 and intended to end in 2017, the Help to Buy ‘Equity Loan’ scheme in its original guise will end on 31st March 2021, although some exceptions are in place for those who reserved before 30th June 2019, who have until 31st May 2021.

It will remain as an equity loan of 20% (40% in London) of the sale price of the home. The property will need to be a newly built home, and the developer will need to support the scheme for you to be able to use it.

Similar to the previous scheme you won’t be charged interest on the loan for the first five years. Interest fees start at 1.75% and rise each year in April by the Consumer Prices Index including owner occupiers’ housing costs (CPIH) plus 2%. You pay a monthly management fee of £1 for the life of the loan.

The changes are around the maximum purchase price of the property, which will be based around 1.5 times the current forecast regional average house price, and the fact that you will now have to be a true first time buyer to qualify for the scheme.

Region Price cap for Help to Buy
homes April 2021 to March 2023
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

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