Great news for home buyers: they’ll be able to make use of the Help to Buy scheme until at least the end of the decade. This news comes following the government’s decision to extend the programme to 2020.
The move was announced by Chancellor George Osborne ahead of his annual Budget speech, and he noted that the extension would apply only to the first phase of the scheme (that helps cover the cost of new-build homes). The government will also add £6 billion to the scheme to back the construction of 120,000 houses, he told the BBC on Sunday.
Help To Buy gives new house buyers the chance to apply for a government-backed loan of up to 20% of the cost of their planned purchase. Buyers need only a 5% cash deposit and a 75% mortgage to cover the rest of the sum. Only houses worth up to £600,000 can qualify for the two-part scheme, for which the government had planned to allocate £3.7 billion by 2016.
The announcement for Help to Buy’s extension will be welcomed by home buyers, who initially thought the scheme would end in 2016.
In his interview with the BBC, Osborne said that the government also intends to stick to plans to create its first new “garden city” in nearly 100 years. It will be located at Ebbsfleet, where it will invest £200 million in the construction of 15,000 homes in the Thames estuary. The site in Kent is situated on the high-speed rail line that connects London with Paris and other European cities.
Will you be making use of Help to Buy in the next six years?