We thought a Help to Buy update on the Equity Loan scheme available in the UK would be helpful following the recent Budget. Currently the Government will lend purchasers of new homes up to 20% (40% in London Boroughs) of the cost of that property. This means that you will only need a 5% cash deposit and a 75% mortgage to make up the rest. You won’t be charged loan fees of the 20% loan for the first five years of owning your home.
In the Budget the Chancellor announced details of a new equity loan scheme which will be launched in April 2021 which will be available to first time buyers only. This scheme will run for just two years until March 2023.
The other change to be introduced is a regional cap on property prices. The current cap is £600,000 but with effect from April 2021 the position will be as follows :
| Region | Price Cap |
| North East | £186,100 |
| North West | £224,400 |
| Yorkshire & 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 |
Until 2021 Help to Buy loans remain available to all purchasers of new homes up to £600,000 and could help you achieve your dream home at Priors Orchard in Southbourne. For more information click here or contact Wendy or Caroline in the sales office on 01243 790581 who can put you in touch with an independent financial advisor.