News and Blog
Help to buy ends.
Wednesday 9th November 2022
Help to Buy ends: what else is available?
Are you looking to buy your first home? Applications now closed for the Help to Buy loan scheme in England, what other help is out there right now?
We’ve taken a look at some of the other government schemes and legislation changes that aim to either help you to get on the ladder, or to buy your next home.
What’s happening with Help to Buy?
The Help to Buy Equity Loan, set up to help first-time buyers purchase a home in England, has now closed to new applications. And all homes being purchased via the scheme will need to have completed by the end of March next year.
Wales has its own Help to Buy scheme, which offers shared-equity loans of up to 20% to buyers of new-build homes. You can still apply for this scheme between now and the end of March, 2023. The Help to Buy Scotland scheme has already closed.
And what about Help to Buy ISAs?
The deadline to open a new Help to Buy ISA has already passed. However, anyone with an account already open can add up to £200 per month until the end of November 2029. You can still claim the government bonus – currently 25% on savings up to £12,000 – which is payable on completion of a first home purchase until 1 December 2030.
If you don’t already have a Help to Buy ISA, then a Lifetime ISA could be used as an alternative. To open one, you need to be over 18, but under 40. You can save up to £4,000 each year until you’re 50, and the government will top-up the saved amount with a 25% bonus (a maximum of £1,000 per year as a bonus). Like the Help to Buy ISA, you’re able to withdraw the funds to purchase your first home.
Stamp duty relief for first-time buyers
In September, the government announced a permanent change to the amount of stamp duty tax that’s paid on homes purchased in England and Northern Ireland. The threshold at which home-buyers start to pay stamp duty was raised from £125,000 to £250,000. If you’re a first-time buyer, there are further savings offered. You won’t pay any stamp duty on a home priced up to £425,000. For a home priced above this, you’ll pay 5% on the amount you spend between £425,001 and £625,000.