Help to Buy is ending so what else is available to help you?

If you are currently looking to buy your first home, we want to make you aware that applications have now closed for the Help to Buy loan scheme in England.

So, what other help is out there right now? We’ve looked at some of the schemes along with the advice from one of property portal partners – Rightmove.

There are some other government schemes and legislation changes that aim to either help you to get on the ladder, or to buy your next home.

As one of our directors, Russell Griffin, is the Midlands Regional Executive on the Propertymark board, he was invited to attend some of initial meetings of the Home Buying and Selling Group and helped to inform the Government’s Help to Sell Guide.

What’s happening with Help to Buy?

The Help to Buy Equity Loan, set up to help first-time buyers purchase a home in England, has now closed to new applications. And all homes being purchased via the scheme will need to have completed by the end of March 2023.

And what about Help to Buy ISAs?

The deadline to open a new Help to Buy ISA has also already passed. However, anyone with an account already open can add up to £200 per month until the end of November 2029.

You can still claim the government bonus which is currently 25 per cent on savings up to £12,000. This is payable on completion of a first home purchase until December 1, 2030.

If you don’t already have a Help to Buy ISA, then a Lifetime ISA could be a potential alternative. To open one, you need to be over 18, but under 40. You can save up to £4,000 each year until you’re 50, and the government will top-up the saved amount with a 25 per cent bonus (a maximum of £1,000 per year as a bonus). As with the Help to Buy ISA, you can withdraw the funds to purchase your first home.

Stamp duty relief for first-time buyers

In September, the government announced a permanent change to the amount of stamp duty tax that’s paid on homes purchased in England and Northern Ireland. The threshold at which homebuyers start to pay stamp duty was raised from £125,000 to £250,000.

If you’re a first-time buyer, further savings are offered. You won’t pay any stamp duty on a home priced up to £425,000. For a home priced above this, you’ll pay per cent on the amount you spend between £425,001 and £625,000.

Deposit Unlock

Deposit Unlock is similar to the Help to Buy Equity Loan scheme, in that it aims to help homebuyers to purchase a new-build home with a smaller deposit of 5 per cent. However, unlike the Help to Buy scheme, Deposit Unlock is available to all homebuyers, not just first-timers.

There are also some other differences between the two schemes. The Help to Buy loan was interest free for the first five years, but with Deposit Unlock, you’ll start paying interest right away.

Shared ownership

Shared ownership allows buyers to purchase a share in a property and pay rent on the remaining part. You can purchase a percentage of the home that’s in line with the mortgage you feel you can afford at that time. It’s then an option to buy a bigger share of the property later if you choose to.

There are multiple shared-ownership schemes you can make use of if you meet certain criteria. You can read more about them here. And please speak to us here at Samuel Wood for any Shared Ownership properties which are available for sale through us.

What’s happening with mortgages, and what does that mean for first-time buyers?

Lenders have tightened their affordability criteria over recent weeks. This is to make sure people are still able to afford their mortgages, were their payments to increase.

So, unfortunately some first-time buyers might find it more difficult to get a mortgage. But it’s important to find out what the best options might be for you. Mortgage brokers and lenders can help you to work out how much you can borrow and what sort of mortgage to take out. They’ll also talk through your specific circumstances to help determine the best lender for you. It’s essential that you get the right advice in this area.

And here at Samuel Wood in Shropshire, we have also designed our own scheme called First Time Seller and a handy downloadable How to Sell Guide to help those who are selling their property for the first time.

So, whether you are a first-time buyer or a first-time seller, our expert teams are here to help and advise in whatever way we can. Please call one of our four county offices on Shrewsbury - 01743 272710, Ludlow - 01584 875207 , Craven Arms 01588 672728 and Church Stretton 01694 722723.

Please note:

Neither Rightmove nor Samuel Wood are authorised to give financial advice; the information and opinions provided in these articles are not intended to be financial advice and should not be relied upon when making financial decisions.

Please seek advice from a specialist mortgage provider.

30th November 2022

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