The Help to Buy scheme, set up by the government to provide equity loans for homebuyers, is being extended to make sure that prospective buyers can take advantage of the loans despite delays caused by COVID-19.
The closing date for new property buyers to be able to access a loan under this scheme was originally 31st December, but now the government has confirmed that it will run on for a further two months – coming to an end on 28th February next year. This follows concerns being expressed that homebuyers might lose out if the building of their property is delayed because of the virus restrictions.
However, those hoping to get one of the equity loans available through this scheme will have to finalise the purchase of their home in legal terms by 31st March next year at the latest if they want to remain eligible. The only exception to this could be those who reserved a home for purchase prior to 30th June this year, who may be given a two-month extension to finalise legal acquisition.
In announcing the extension to the scheme, housing minister Christopher Pincher told FT Adviser that:
“Today’s announcement will help provide certainty and assurance for Help to Buy customers whose new homes have been delayed due to coronavirus and affirms the government’s commitment to helping more people to own their own home.”
Anything that increases the demand for home ownership will be greeted with delight by those who have secured a CeMAP mortgage advisor qualification during the crisis.