Home > Legal Articles > 2013 BUDGET INTRODUCES HELP TO BUY SCHEME

2013 BUDGET INTRODUCES HELP TO BUY SCHEME

Posted on Wednesday, 3rd April 2013 by
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Photo Credit: Mark Strozier via Compfight cc

During the 2013 budget the Help to Buy scheme was announced as a way to tackle the long-term problems in the housing market.

Help to Buy is a Government scheme designed to encourage people on to the property ladder. There are two parts to the scheme:

  1. EQUITY LOAN: prospective buyers will only need to put down a 5% deposit while 20% will be funded by the equity loan.
  2. MORTGAGE GUARANTEE: Lenders will be incentivised to make more mortgages available for prospective buyers with smaller deposits.

The Help to Buy equity loan scheme is due to commence on 01 April 2013. Buyers will need to have a 5% deposit to buy a new build property to access the scheme. The Help to Buy mortgage guarantee will be available to buyers looking to purchase either a new build or an existing property. This will be accessible from January 2014.

Prospective buyers will need to meet the eligibility criteria and affordability checks to qualify for the scheme. Although there has been some controversy surrounding the new scheme, it will allow all buyers to purchase a property up to the value of £600,000. It is hoped the Help to Buy scheme will breathe new life into the housing market which has been hit by banks in the recent years who have been demanding larger deposits from homebuyers.

Rebecca Gunn specialises in Employment law, Commercial Property & Residential Property and is a solicitor in our Leicester office.

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Rebecca Gunn - Residential Conveyancing
Rebecca Gunn - Residential Conveyancing
Rebecca.Gunn@ehlsolicitors.co.uk 0116 402 6688
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