Before You Continue…

Our website uses cookies. By continuing to browse the site, you are agreeing to our Privacy Policy.

OK - continue
logo
Search for mortgage help
CALL US:  023 8098 0304
Mobile menu bars Close mobile menu
mortgage calculator mortgage calculator
request a call back Request a Callback
email us info@themortgagehut.net
call for mortgage advice chat online now
Search for mortgage help

Specialist Mortgage Help

  • First Time Buyers
  • House Mover Mortgages
  • Bad Credit Mortgages
  • Remortgaging
  • Equity Release
  • Self Employed Mortgages
  • Buy to Let Mortgages
  • Expat Mortgages
  • Commercial Mortgages

Useful Links

  • Home
  • Contact us
  • Mortgages
  • Mortgage Insurances
  • About Us
  • Customer Reviews
  • Refer a Friend Scheme
  • Expert Articles
  • News
  • Sitemap
  • New Build Mortgages
  • CIS Mortgages Explained

Privacy Settings

  • Privacy Policy

Help to Buy extended for buyers and builders until 31 May

  1. Home
  2. News

Homes England have announced that despite the current Help to Buy scheme coming to an official end on the 31st of March 2021, homebuyers will have more time to complete their purchase. 


The UK government’s Help to Buy equity loan scheme, which offers buyers a 20% or 40% interest-free loan in lieu of a deposit, has arguably been vital for first-time buyers who otherwise would not have been able to buy. 


A final extension has been announced meaning that those in the process of completing on their New Build flat or house with the current Help to Buy scheme, will have until the 31st of May to do so.


Why has Help to Buy been extended?

An extension has been granted for Help to Buy because of delays to homeowners caused by Covid throughout 2020. 


As a result of lockdowns caused by Coronavirus in the UK, many buyers have been unable to complete purchases for New Build properties that qualify for the current Help to Buy scheme. 


The housing industry as a whole, including those in construction, mortgage brokers and mortgage lenders, have continued to provide their services after an initial lockdown that began in March 2020 and with the extension now permitted, it is hoped that many potential buyers can make the deadline successfully. 

Homes England statement on Help to Buy extension

“Help to Buy will end on 31 March 2021, but homebuyers using the current scheme will have more time to complete their purchase. We are extending legal completion to 31 May 2021 due to delays caused by Coronavirus. 


This allows an extra 2 months for home builders to complete the build and for homebuyers to legally complete and get the keys to their home.


There will be no more extensions, so we are asking home builders to continue to build at pace. Please check with your home builder and conveyancer that you’re able to meet these dates.”

What happens if buyers don’t meet the new Help to Buy deadline?

The Government said that if buyers can’t meet the legal completion by 31 May 2021, their housebuilder must unconditionally release them from the contract.


Reservation fees should also be refunded if the buyer isn’t able to finalise their home purchase before the current scheme ends.


It’s important to be aware that if however, you have already received an Authority to Proceed from your Help To Buy agent, your homebuilder may be entitled to make deductions from your reservation fee.


You can talk to one of our mortgage advisors on the phone or by using our online chat if you’re concerned about losing your reservation fee in the event that you don’t meet the Help to Buy deadline. 


To save you the hassle, they can even chase up the housebuilder and discuss your reservation fee on your behalf.

Do “Early Bird” reservations secure eligibility for the Help to Buy extension?

‘Early bird’ schemes are are not part of the Help to Buy: Equity Loan scheme. 


Lots of housebuilders offer Early Bird incentives for those who pre-reserve their New Build plots but these do not count as full reservations.


The legal completion date for your property purchase will be taken from the date you fully reserved with Help to Buy: Equity Loan. 

Will I qualify for the Stamp Duty extension if I miss the Help to Buy deadline?

The Help to Buy extension may be ending in May 2021 but Rishi Sunak has announced in his annual budget that the Stamp Duty holiday will be extended an additional 6 months.


Therefore, buyers that miss the Help to Buy deadline could still be able to take advantage of Stamp Duty savings in England and Northern Ireland where the extension has been increased until September. 


Subject to mortgage eligibility checks, a buyer could still benefit from avoiding the tax, which can cost other buyers in the UK up to 12% of the property’s value they’re buying. 

Can first-time buyers still get a good deal without Help to Buy?

The range of first-time buyer mortgages with high loan-to-value ratios dropped at the beginning of the pandemic but thankfully, there are a number of UK lenders that are willing to provide mortgages with lower deposit requirements, if certain affordability criteria are met. 


The 2021 fiscal budget announcement provided exciting new details about a new government-backed 5% deposit mortgage scheme.


Getting onto the property ladder could be about to become more achievable for a lot of first-time buyers that can’t afford a large deposit.

When does the new Help to Buy scheme begin?

Help to Buy 2021-2023 for first-time buyers starts on 1st April 2021 and ends 31st March 2023. 


Interested applicants planning on buying a home through the scheme have been able to apply since the 16th of December 2020 and can reserve plots and completed homes with a registered home builder. 


Our Help to Buy advisors manage first-time buyer applications for New Build homes every day and can explain the pros and cons of the scheme while considering your unique circumstances. 

What is the new Help to Buy scheme for 2021?

The scheme has many similarities with its predecessor and is only available to first-time buyers that are buying a home to be used as their main residence and not for the purposes of buy-to-let.


Eligible applicants must have at minimum 5% deposit of their own but can borrow an additional 20% (or 40% if they’re in London), interest-free for 5 years. 


After those five years have passed, the loan is charged at an interest rate of 1.75% and then following the sixth year, the interest on the equity loan will increase by the Consumer Price Index (CPI) plus 2% (1% if you took the equity loan before December 2019).

Here’s how The Mortgage Hut helps FTBs with Help to Buy

We’re an approachable group of mortgage experts with a team of young, old and everyone in between, taking great pride and care in the service we deliver. 


Help to Buy is pivotal for lots of first-time buyers which is why our advisors are trained so frequently on the subject. 


We work with housebuilders closely and communicate the latest information, deals and incentive opportunities to the people we help, to ensure they get the most out of their experience as first-time buyers.


We also have access to a whole host of 5% deposit Help to Buy mortgage lenders and can check your eligibility for each of the relevant options for you, without affecting your credit score.


Call 023 8098 0304 or get in touch with a Help to Buy expert through our enquiry form.

Managing Director Nicola Schutrups
News Clip (03/03/2021) by
Nicola Schutrups (Managing Director)
The Mortgage Hut

Looking for a Mortgage?

Find out if you're eligle in a couple of clicks, with no hidden credit checks.

Get Started

Follow us on social media for updates

  • Like us on Facebook
  • Follow us on Twitter
  • See us on instagram
  • Watch us on YouTube

Related News Information

  • Vivid Housing Association buys Hampshire house builder
  • Green mortgages - what are they and how can I get one?
  • Property markets boom but buyers aren’t flocking to flats
  • FCA release guidance on repossessions and mortgage breaks
  • How will COVID-19 and the BOE base rate cut affect my mortgage?
  • Government considers removing stress tests from mortgage applications
  • How does the 2020 budget affect me?
  • How can housebuilders help their buyers meet the Stamp Duty deadline?
  • Stamp duty holiday extended until end of September
  • Will the government extend the stamp duty holiday?

Looking for a Mortgage?

Find out if you're eligle in a couple of clicks, with no hidden credit checks.

Get Started

Follow us on social media for updates

  • Like us on Facebook
  • Follow us on Twitter
  • See us on instagram
  • Watch us on YouTube

Contact The Mortgage Hut

Head office address of The Mortgage Hut
SOUTHAMPTON (HQ)
14 College Place
Southampton
Hampshire
SO15 2FE
Head office phone The Mortgage Hut
023 8098 0304
Head office email The Mortgage Hut
info@themortgagehut.net
Contact Us

The Mortgage Hut Limited is an appointed representative of Mortgage Advice Bureau Limited and Mortgage Advice Bureau (Derby) Limited which are authorised and regulated by the Financial Conduct Authority.

The Mortgage Hut Limited. Registered Office: 14 College Place, Southampton SO15 2FE Registered in England Number: 07629941

Contact Us

Important Information

  • The guidance and advice contained in this website is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK.
  • Some products are not regulated by the Financial Conduct Authority.
  • Please note that The Mortgage Hut is not responsible for the accuracy of the information contained within any linked sites accessible from our website.
  • Your home may be repossessed if you do not keep up repayments on your mortgage.
  • There may be a fee for mortgage advice.
  • The actual amount will depend upon your circumstances.
  • The fee is up to 1% and a typical fee is £748.

Data Protection & Privacy

You voluntarily choose to provide personal details to us via this website.

Personal information will be treated as confidential by us and held in accordance with the Data Protection Act 1998.

You agree that such personal information may be used to provide you with details of services and products in writing, by email or by telephone.

When you use our website, we access your device/computer to set cookies and collect data.

We do this so it works, is secure and delivers the best browsing experience.

We also collect data to study how people use our site and help us improve our services and tailor our marketing.

For more information see our Privacy Policy.

back icon
close icon

Specialist Mortgage Advice

Mortgage Advice

Mortgage Advice
Get Started
Mortgage Advice

Mortgage Advice

Remortgage Advice

Remortgage Advice
Get Started
Remortgage Advice

Remortgage Advice

Buy to Let Mortgage

Buy to Let Mortgage
Get Started
Buy to Let Mortgage

Buy to Let Mortgage

Is the mortgage for your home or a business venture?

Residential Button Residential Hover Button
Buy To Let Button Buy To Let Hover Button

Are you buying or remortgaging?

Residential Button Residential Hover Button
Buy To Let Button Buy To Let Hover Button

Have you found a property yet?

Yes Button Yes Hover Button
No Button No Hover Button

Is the property house or a flat?

House Button House Hover Button
Flat Button Flat Hover Button

What is the property’s estimated value?

£

Deposit amount or equity?

£

Have you got any adverse credit?

Yes Button Yes Hover Button
No Button No Hover Button

What types of adverse credit?

Next Button Grey Next Button Blue Next Button White

What is you combined annual income (before tax)?

£

Sourcing Mortgages…

Nicola Arbon

“There's a reason why over 500 clients rate us as Excellent.”
Nicola Arbon, Managing Director and Mortgage Guru

Green Tick

Congratulations, we've successfully found you multiple mortgage options.

Next Button Blue Next Button White

Please enter your name to send you the results

Please enter the best email to send you the results

What is the best number to reach you on?

What day & time best suits you?

Next Button Blue Next Button White

Thank you

logo

A member of The Mortgage Hut team will review your enquiry & we’ll be in touch to discuss in more detail & to advise on the options available to best suit your needs.

Head office phone The Mortgage Hut 023 8098 0304