First-time buyers have just weeks left to take advantage of government loan scheme

First-time buyers have just a few weeks left to take advantage of a government scheme that helps you buy your own house. With the difficulties facing first-time buyers these days, from increased house prices to soaring interest rates, new homeowners often need all the financial help that they can get.

The Help to Buy equity loan is a government scheme that helps first-time buyers get a property with just a five percent deposit by borrowing 20 percent of the purchase price, or 40 percent in London, interest-free for five years. The aim is to help people get onto the property ladder quicker or be able to afford a more expensive house.

In October 2018, the government announced that the scheme, which applies to buying new build homes only, would run from April 1, 2021 to March 31, 2023, which means those who have applied have less than a month left to make the most out of the loan.

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First-time buyers who applied for the Help to Buy equity loan must have completed the purchase on their newly built home by March 31, 2023.

This means that if you applied to the scheme by 6pm on October 31, your application will still be processed, but you must complete the purchase of your home, meaning you legally own it and have the keys to your home, by 6pm on March 31.

Your homebuilder must have finished building your home on or before 17 March 2023 so it’s ready to live in. If your builder cannot finish your home in time, they must return your reservation fee to you in full.

You are eligible to take advantage of the scheme if you have already applied and you are a first-time buyer who is 18 or over. You also need to be able to afford the fees and interest payment