Budget extends new-build scheme
THE Help to Buy scheme, announced in this week’s budget, has been welcomed. It enables buyers to put down 5 per cent deposits on newly-built homes with to 20 per cent of the cost of the home funded by a shared equity loan, interest free for five years and repayable when the home is sold.
The previous First Buy scheme was only open to first-time buyers, whereas this will be available to all buyers of newly-built homes. The previously income limit of £60,000 a year has been scrapped too.
Help to Buy will apply to newly-built homes up to £600,000 and borrowers will be able to apply from April 1. However, the Council of Mortgage Lenders said it will take some months to put the scheme in place.