Published: 16/02/2021
The government has a new Help to Buy: Equity Loan (2021-2023) scheme for first-time buyers who are interested in new-build homes, which is now open for applications. This new scheme replaces the current scheme.The new scheme is intended to help and support people who are trying to get onto the property ladder and own their first home.
What is the scheme and what does it mean?
With a Help to Buy: Equity Loan, the government lends homebuyers up to 20% (40% in London) of the cost of a new build home. Buyers will contribute a deposit of 5% (or more) and arrange a mortgage to make up the rest of the purchase. The equity loan is interest-free for the first five years.
The maximum house value on which the scheme can be used in Norfolk is £407,400.
First-time buyers who are eligible will be able to reserve their homes from now and be ready to get their keys from 1st April 2021.
Example A – buyers have a deposit of £11,000
| House Value | £220,000 |
| Buyers Deposit (14.3%) | £11,000 |
| HTB Equity Loan (20%) | £44,000 |
| Mortgage Required | £165,000 |
Example B – buyers have a deposit of £50,000
| House Value | £350,000 |
| Buyers Deposit (5%) | £11,000 |
| HTB Equity Loan (20%) | £44,000 |
| Mortgage Required | £165,000 |
For further advice we recommend you speak to Broadland Consultants.
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Current developments using the scheme
Heath Farm, Holt
Heath Farm is a unique collection of beautifully crafted 2, 3, 4 bedroom houses and 3 bed bungalows, with private gardens and parking. Each of the stylish new build homes have been efficiently designed in keeping with the surrounding areas and finished to a high specification including fully fitted Symphony kitchens with Bosch integrated appliances.
Find out more here.
Butterfield Meadow, Hunstanton
Butterfield Meadow offers a total of 166 beautiful new homes in over 23 different house styles including terrace, link detached and detached houses and detached bungalows offering a mix of one to four bedroom homes.
Located just off Heacham Road in the popular seaside town of Hunstanton, this idyllic location offers residents the enviable chance to live close to miles of sandy beaches but within easy reach of King's Lynn and connections to the area's larger towns and cities.
Find out more here.
Hazel Grove, Watton
Hazel Grove is an exciting collection of new homes built by Hopkins homes positioned in the market town of Watton. The properties range from two bedrooms to four bedrooms. Whether you're a professional couple, growing family or looking to downsize there is a home for you.
Find out more here.
For further information on the scheme, or to find out whether you are eligible, please see here.
*Disclaimer
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Sowerbys do not offer mortgage advice. Subject to full affordability checks, you may qualify for a higher equity loan amount from the government. You should take advice from a suitably qualified adviser before agreeing to a mortgage. Help to Buy is not available on part buy, part rent homes for sale under the Home Reach scheme.