From April 2021 the Help to Buy equity loan will be changing - as may your eligibility to apply.
The current Help to Buy Government-backed loan is available for both first time buyers and existing home owners purchasing a newly-built property by only putting down a 5% deposit.
Check out our infographic Help to Buy Breakdown: Why the Scheme isn't just for First Time Buyers.
The new product taking over in 2021 will be limited to first time buyers only.
According to the Homes England Help to Buy equity loan's latest Stakeholder technical briefing, from April 2021 it will only be offered to those who have not "previously acquired a major interest in a dwelling or an equivalent interest in land situated anywhere in the world."
Also, for those buying a property jointly, all purchasers must meet the conditions.
The 2021-2023 changes will also see the introduction of regional price caps, which is currently set at £600,000 nationwide.
For London the price tag will remain at £600,000 whereas the North East will see a dramatic drop to a maximum of £186,100.
In Dorset, this will lower applicants' maximum property purchase price to £349,000 under the new rules.
The scheme will continue to work alongside Stamp Duty Land Tax relief (SDLT) which you can read about in our post; New Stamp Duty changes - How does this affect you?
The Help to Buy scheme was designed to reassure mortgage lenders and give buyers the opportunity to own their own home by only having to cover a 5% deposit. It is explained in detail on our First Time Buyers page.