More homes were purchased through the Help to Buy: equity loan scheme in 2020/21 than any other year on record, it has been revealed.
The figures come after the initiative was replaced by a new equity loan scheme on 01 April 2021.
What is the Help to Buy: equity loan scheme?
Under the scheme, first-time buyers can get an equity loan towards the cost of buying a new-build home. The Government will lend first-time buyers up to 20% of the cost of the home, or 40% in London.
In return, you will need to pay a minimum deposit of 5% of the property purchase price and arrange a repayment mortgage of at least 25% of the property purchase price.
The revised scheme includes regional property price limits to ensure support reaches those who need it the most.
Record support
According to the latest statistics, more than 55,000 properties were purchased with the support of a Help to Buy: equity loan in the 2020-21 financial year – more than in any other year since the scheme launched in 2013.
It means that some 328,506 homes have now been purchased through the scheme, representing around £20 billion in loans.
“Appetite for homeownership remains high”
Commenting on today’s figures, Housing Secretary Robert Jenrick said: “Over 55,000 households bought their home with the support of Help to Buy equity loan last year: a record year for the scheme, which is helping young people and first-time buyers feel the sense of pride and achievement that comes with owning your own home.
“Whether it be Help to Buy, the 95% mortgage guarantee scheme or First Homes – we’re doing everything we can to make home buying an affordable and realistic ambition.”
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