Q. What is the new Help to Buy Scheme?
A. The new Help to Buy scheme is a government-backed scheme that replaces the previous scheme in England only. Applicants should have the Authority to Proceed (ATP) before they submit a mortgage application. It is the responsibility of the
Help to Buy agencies to check client eligibility for the new scheme.
Q. What are the main differences between the new scheme and the old one?
A. The new scheme only applies to England. The 2 big changes that will impact your clients are:
1) The scheme is only available for first-time buyers
2) There are now regional caps on the maximum purchase price, set at 1.5x the average property price for a first-time buyer in that particular region.
Q. What is the main difference for my clients?
A. As with the previous scheme, you'll need to explain the new scheme’s interest fee to your clients.
Q. What about Scotland and Wales?
A. The Scotland and Wales schemes are not affected by these changes. The Help to Buy Wales scheme will continue for the foreseeable future. The main Help to Buy scheme in Scotland is now closed. The Help to Buy Smaller Developers Scheme will continue
Q. What are the new regional price caps?
A. They start at £186,100 for a property in the North East to £600,000 in London. The caps were created by taking the average property price for a first-time buyer and multiplying it by 1.5.
|Region||Max property price|
|Yorks & Humber||£228,100|
| || |
Q. My clients are applying as joint applicants but one has previously owned a home ( over 10 years ago); can they still apply under the new scheme?
A. No, all applicants must be first-time buyers with no previous homeownership. The new scheme defines a first-time buyer as ‘someone who does not own, and has never owned, a home anywhere in the UK or in the world’.