Help to Bye
The deadline to apply for a Help to Buy Equity Loan passed on Monday 31 October 2022. What does this mean for first time buyers and what can you do if you haven’t completed your purchase before the deadline? Our Head of Property answers these questions and more…
What is a Help to Buy Equity Loan?
A Help to Buy Equity Loan is a special type of mortgage. The Government will loan first time buyers between 5% and 20% of the price of a new build property. No interest is charged for the first five years of the loan. When the property is sold the same percentage of the resale price must be paid back to the Government.
What does the deadline mean?
The deadline to apply for a Help to Buy Equity Loan was 31 October 2022. This means it is no longer possible to apply for a new loan.
What if I haven’t completed my purchase?
Although it is no longer possible to apply for a new loan, if you have already applied you will have until 31 March 2023 to complete your purchase.
How do I repay my Help to Buy Equity Loan?
To repay your Help to Buy Equity Loan you must complete a Repayment Application Form and send the same to Target HCA together with a valuation report. The valuation will be used to calculate the amount required to repay the loan.
Why do I have to pay more than I borrowed?
Unlike a standard mortgage, the loan does not secure a fixed amount of money against your home. The Government will own a percentage of the value of the property. If your home increases or decreases the amount due to repay the loan will increase or decrease.
Residential Property & Conveyancing Team
At Morrish Solicitors each of our specialist property lawyers have decades of experience in dealing with the purchase of new build properties.
To enquire about our residential property and conveyancing services please call us on 033 3344 9600 or simply email [email protected] with your request.
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