Help to Buy Scheme for 2021. An introductionBut firstly my name is Dan, I am a CeMAP qualified mortgage & protection adviser. This video is purely for educational purposes only, and should not be seen as advice or a recommendation to act.
With that out of the way, on with the video.
You may or may not know by now that there is a new Help to Buy scheme that starts in April 2021 and runs through to March 2023, which you can apply for from 16th December 2020 and complete by 31st March 2023.
If you do not qualify for the new scheme, then you must legally complete buying your home by 31 March 2021 and if you haven’t already done so, you need to apply no later than the 15th December 2020 for the existing Help to Buy Equity Loan Scheme.
As I have already mentioned, you can apply for the new scheme from 16th December 2020 but it doesn’t start until April 2021, which means you can’t complete buying your home before then.
The new scheme is available to First Time Buyers ONLY and like the old scheme, the equity loan is up to 20% outside of London and 40% in London.
BUT there are price caps on the new homes, depending on the region you’re purchasing in depends on the maximum property value you can buy through the scheme.
You will also need to check with your home builder that they are registered for the scheme before you apply.
Like the existing scheme, you won’t be charged interest on the equity loan for the first 5 years.
But there is a slight change to the interest payment after the 5 years. Interest fees start at 1.75% and rise each year in April by the Consumer Prices Index (CPI) plus 2% and you will pay a monthly management fee of £1 for the life of the equity loan.
The equity loan is secured against your property in the same way as a mortgage. You must repay the equity loan when you sell the home, pay off your mortgage, or reach the end of your equity loan term. But, you can repay all or part of the equity loan any time before then.
Get in touch with me or any other qualified mortgage adviser so we can help you decide if Help to Buy: Equity Loan is right for you.
One of the most important things you could do to prepare when applying for a mortgage is to check your credit score and history.
If you haven’t already seen my videos on how to improve your credit score and how to check your credit score and history for free, then I have put up a couple of links to these videos and I will also put them in the description.
These videos are quite informative, if I don’t mind saying so myself because they equip you with the basics of what you need to know, so you do not waste your time and more importantly, end up being disappointed when you can’t buy your dream home.
Your home may be repossessed if you do not keep up repayments on your repayment mortgage, equity loan, or other loans secured against it.
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