New Help to Buy scheme is now open

New Help to Buy scheme is now open

From 16th December 2020, first-time buyers can apply

First-time buyer? Your dream home is closer than you think…

The new government Help to Buy scheme offers a fantastic opportunity for you to take those vital steps towards owning your dream new-build home - without a large deposit. 

From 1st April 2021 to 2023, the Help to Buy equity loan scheme will be available to first-time buyers, with regional price limits on homes also due to take effect. First-time buyers can start applying for the new scheme now.

How does it work?

As long as you can raise a 5% deposit, the government will provide an equity loan of up to 20% of the property value. This rises to 40% in London. You’ll then have to qualify for a mortgage for the remaining amount. 

Initially, the loan is interest-free for five years. In year six, the interest rises to 1.75% and rises again each year by the Consumer Price Index +2%. 

How is the new scheme different?

There are two ways in which the new scheme will be different from the previous one:

  • Firstly, it will only be available to first-time buyers.
  • Secondly, there will be price caps in place across England, so the amount you can spend on your home will depend on which region the property is in. 


Price cap for Help to Buy homes April 2021 to March 2023

North East £186,100
North West £224,400
Yorkshire & the Humber £228,100
East Midlands £261,900
West Midlands £255,600
East of England £407,400
London £600,000
South East £437,600
South West £349,000

The scheme was initially launched to lend a helping hand to those aspiring to get on the property ladder. By lowering the amount needed for a deposit and reducing the amount buyers will need to borrow, it opens up a wider range of properties to first-time buyers.  

Director of Help to Buy at Homes England, Will German, said: “Help to Buy has already helped more than 270,000 people into homeownership and 82% are first-time buyers. The new Help to Buy builds on this success, with first-time buyers at 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. 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.”

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What's available?

Take a look at some of the new build properties currently available.