The government’s flagship housing policy is now celebrating five years of helping people like you save for and buy their dream home. Since its inception in 2013, the government has launched various related schemes, including the Help to Buy ISA, Shared Ownership, and the Help to Buy: Mortgage Guarantee Scheme.

But it is the Help to Buy: Equity Loan Scheme in particular that has been highly influential in shaping the housing market, quickly becoming one of the most popular routes into homeownership, helping people buy as many as 160,000 homes. With a minimum deposit of just 5%, you can borrow 20% of the house price interest free for five years.

Already have a Help to Buy mortgage?

If you took out a Help to Buy mortgage when it was first launched, then you could be looking at the final days of your interest-free five-year period. This makes it a crucial time to discuss financial plans with us, especially if you are nearing the end of your initial five-year period.

Some borrowers will soon be paying interest on the equity loan, and although the continuation of relatively low rates means a small impact for most, it could also create affordability issues that need to be addressed for others.

Considering using Help to Buy?

Despite the government pledging a further £10bn in last autumn’s budget, Help to Buy is scheduled to expire in April 2021. Some experts believe that whatever happens, the government will need to continue supporting the new build market in some way beyond 2021. But that means there is still plenty of time to take advantage of the schemes available.

You could also make use of the Help to Buy ISA. This is offers savers a bonus of 25% on top of savings up to £200 a month, to a maximum of £3,000, which is paid to the solicitor once your client is ready to move.

If you want to find out more about the various Help to Buy schemes available, contact us today and we can arrange a meeting to discuss your mortgage plans.