{"id":6033145,"date":"2020-09-30T09:30:40","date_gmt":"2020-09-30T08:30:40","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=6033145"},"modified":"2023-11-09T17:34:33","modified_gmt":"2023-11-09T16:34:33","slug":"help-to-buy-could-see-greater-take-up-from-first-time-buyers","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-gb\/2020\/09\/30\/help-to-buy-could-see-greater-take-up-from-first-time-buyers\/","title":{"rendered":"Help to Buy could see greater take-up from first-time buyers"},"content":{"rendered":"

The Help to Buy scheme aims to assist buyers of new-build properties who would struggle to save up a deposit. In the current climate, this could be particularly beneficial to first-time buyers right now.<\/strong><\/p>\n

A new Zoopla report<\/a> shows that some potential first-time buyers may be stepping back from the market. This is due to a number of factors, including financial instability linked to job uncertainty and COVID-19. Mortgage<\/a> lenders are also more hesitant to offer high loan to value products, which rules out many first-timers.<\/p>\n

Those who are unable to save for a larger deposit do have options, though. The government’s Help to Buy<\/a> scheme has proved hugely popular since its launch, and means buyers need only a 5% cash deposit. A lender provides a 75% loan to value (LTV) mortgage, while the government offers a 20% loan for the shortfall.<\/p>\n

The initiative is only available on qualifying new-build<\/a> properties. As the number of new houses being built in the UK has continued to climb across the UK, the scheme has helped many to purchase these homes.<\/p>\n

What’s changing in Help to Buy?<\/h4>\n

At present, Help to Buy is available to home-movers as well as first-time buyers. While it has come under some criticism<\/a> for this fact, things are changing next spring. From April, the scheme will only be open to first-time buyers. Until then, this could mean a greater take-up from existing homeowners, who can take advantage of both the stamp duty holiday<\/a> and Help to Buy.<\/p>\n

The new scheme starting from 1 April 2021 will run for two years. As with the existing scheme, the buyer doesn’t pay interest on the loan for the first five years. After that, fees start at 1.75%.<\/p>\n

There will be new price caps that apply to the new Help to Buy depending on region. These are:<\/p>\n