Help to buy: How homebuyers can secure ‘beneficial’ loan before October deadline | Personal Finance | Finance
Ms Flynn said: “The home must have reached practical completion and have received a new-home warranty by December 31, 2022. You must also have received the keys to your new home by 6pm on March 31st 2023 to stay eligible for the equity loan.”
However, the application process for the Help to Buy equity loan itself is fairly straightforward.
The first thing to do is check eligibility. Applicants must be:
- 18 or over
- A first-time buyer
- Able to afford the fees and interest payments
The next step is to check if the property is eligible for the scheme. The property must be a new build, must not have previously been lived in, and needs to be sold by a registered Help to Buy homebuilder. Those planning on living with someone else will have to make a joint application.
Once this is determined, Ms Flynn said: “You’ll need to reserve a new build property with a builder registered with the scheme. You can then apply online through a Help to Buy agent in your region.
“You will be asked to fill in a Property Information Form so you can give your financial information, as well as your personal details. Once given Authority to Proceed, you can then apply for a mortgage and progress your application to exchange of contracts.”
How does the scheme work?
The equity loan must be paid back in full at the end of the loan term, or when the person pays off their mortgage or sells their home.
Ms Flynn said: “People can repay part or all of the equity loan at any time, but they’ll need to get a market valuation report from a chartered surveyor when they make a repayment.”
On repayments, Ms Flynn said: “Repayments are based on your equity loan percentage and the market value of your home at the time of repayment.
“Be mindful that in the sixth year of your loan you will begin paying interest. This means that part payments often reduce the amount you owe, however, any part payment you decide to make must be at least 10 percent of the market value of your property at that point in time.”
What other Government support is available for homebuyers?
For those planning on buying a house after the Help to Buy applications close, there are other Government-led schemes available to support.
