First time buyers looking to get onto the property ladder could take advantage of the government’s new help to buy scheme, which is set to open soon.
Homes England has released a statement that potential home owners interested in new builds can apply for the Help to Buy: Equity Loan scheme.
The programme covers 2021 to 2023 and buyers can apply from Wednesday December 16.
Benefits of the scheme include a loan from the government of up to 20% of the cost of a new build home.
This percentage jumps to 40% in London.
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Buyers are required to pay a deposit of 5% or more and arrange a mortgage of 25% or more to make up the rest of the cash.
To be eligible, the house you want to buy must be newly built and cannot be worth more than £600,000.
Applicants will need to be able to adore the monthly fee and interest payments on top of their mortgage.
You also can’t have owned a property previously and may not sublet or rent the property once bought.
First time buyers may reserve their homes from mid-December and move in by April 2021.
Speaking about the new scheme, Housing Secretary Robert Jenrick said: "The Government is providing more ways to help families onto the housing ladder, and provide that life-changing moment when you get the keys to your own home.
"Alongside First Homes, Shared Ownership and our £12bn investment in affordable housing, our new Help to Buy scheme will help thousands more families take their first step into a home of their own."
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Will German, director of Help to Buy at Homes England, added: "Help to Buy has already helped more than 270,000 people into home ownership and 82% are first-time buyers.
“The new Help to Buy builds on this success with first-time buyers in front of mind.
"We're pleased we can help homebuyers with smaller deposits to own a home, at a time where there are fewer options open to them."
He continued: “Housing, like most sectors, has experienced a slowdown during the Covid crisis.
“But Help to Buy continues to give homebuilders the confidence to keep on building at a more crucial time than ever."
A whopping 63% of first time buyers who have used the scheme were aged 34 and under with 25% of those being from Black, Asian and minority ethnic backgrounds.
So, it’s worth a shot!
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