Housing affordability in the UK has become an issue. With high property prices, a low supply of affordable housing particularly in certain areas and an increase in the average age of first-time buyers the UK Government has launched an equity-share scheme called Help To Buy in order to try and rectify the issue.
The first stage of the Help To Buy Scheme was launched in England in April 2013 with the second stage being launched earlier this month (October). The Help To Buy Scheme is being rolled out across the UK but Wales, Scotland and Northern Ireland will run their own versions of the scheme. The version in Wales will be known as Help to Buy 2 or Help To Buy Cymru.
The Welsh Government Finance Minister announced on 9th October 2013 that £170m of funding will be made available in order to help potential homeowners purchase new build homes through the shared equity scheme Help To Buy.
To take part in the shared equity scheme, home-buyers will need to provide a minimum 5% deposit and will need to meet specific criteria. We can confirm that the scheme:
- Will be available to both first time buyers as well as home movers, and
- Can be used for new and existing UK properties up to a maximum purchase price of £600,000.
In order to be eligible for the Help To Buy scheme, the following criteria will need to be met:
- Applicants must not own or have an interest in any other property – this includes properties in the UK or Overseas and this also includes properties that are mortgaged or mortgage free
- Applicants must be purchasing the property for their own occupation
- Applicants will need to have all income verified.
We can also confirm that the following are not eligible for the Help To Buy scheme:
- Buy To Let
- Second homes
- Shared equity / shared ownership
- Right To Buy
- Applications where the mortgage term extends into retirement
Please note that the Help To Buy Scheme does not change or reduce a mortgage customer’s responsibility in any way. The Help To Buy mortgage customer is still responsible for paying their mortgage in exactly the same way as any other mortgage customer.
We are also pleased to announce that applicants will be able to complete their mortgage application before the end of 2013 as the Help To Buy 2 Scheme in Wales is now available. Contact us to find out more and let us help you get on the housing ladder.