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Government announce plans for new Help To Build Scheme

Government announce plans for new Help To Build Scheme
Jo Middleton

Author: Jo Middleton - Content Writer

Updated: June 30, 2022

Many of us long to build our own homes, but financing a custom build, or self build, isn’t always easy. Thanks to the new government Help to Build scheme though, which launched this week, those dreams could become a reality.

What is the Help to Build scheme?

It’s a government funded equity loan scheme aimed at aspiring self-builders who only have a small deposit and, as such, tend to struggle with the high costs associated with building your own home.

Typically you can buy a standard home with a 10% deposit. With a self build the average deposit requirement is much higher, normally around 25%, making it impossible for many first time buyers. Help to Build aims to open up this market for people who don’t have large amounts of cash available upfront.

Is it available now?

Yes, there’s £150 million currently in the Help to Build pot and applications are open as of this week, from June 26th, through Homes England. The fund is planned to last for four years, but may close earlier if demand is very high.

How much can you borrow?

Help to Build applicants can borrow from 5-20% of the total estimated cost of the build, or up to 40% in London. There are caps on how much the build can cost in total – £600,000 if you are buying the land as well or £400,000 if you already own the land.

Who is eligible for Help to Build?

To be eligible to apply for the new Help to Build equity loan you need to meet a few basic criteria:

  • Checkbox Purple You must be over 18 years of age
  • Checkbox Purple You must have a right to live in England
  • Checkbox Purple The home you’re building must be your only residence once it’s finished
  • Checkbox Purple You must have outline planning permission
  • Checkbox Purple You must get a self build mortgage through a provider registered for the Help to Build scheme

You will not be able to apply to Help to Build if you’ve applied once already in the previous two years or you already owe money on another government home ownership scheme.

How to apply

Before you can apply you’ll need to have a self build mortgage in place through a registered provider. If you’re not sure of which lender to go to, this is a good point to get some expert advice. Your mortgage will still count if it’s arranged via a broker.

You’ll then need to make your application through Homes England. They’ll carry out their own eligibility and affordability checks and if your application is successful you’ll have three years to buy your land, if you need to, and build your home.

You can find out more about the Help to Build scheme through the government’s Own Your Home website.

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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