The Help to Buy: Equity Loan Deadline is Fast Approaching

Home Blog The Help To Buy: Equity Loan Deadline Is Fast Approaching
Mark Langshaw

Author: Mark Langshaw

Content Manager

Updated: March 18, 2024

The Help to Buy: Equity Loan scheme is coming to an end and the deadline for new applicants is 31st October 2022.

You will still have some time to secure your mortgage after this date, but will need to have submitted your application for the government scheme ahead of the cut-off point.

Those who get their paperwork in on time will have until 31st March 2023 to complete on their mortgage and must have the keys to their new home by 6pm on that date. Failure to do this will mean that your equity loan funds are not released.

How to secure a Help to Buy mortgage quickly

With less than a month remaining to lock down a Help to Buy: Equity Loan, it’s advisable to get your application submitted as quickly as possible if you’re dead set on using the scheme.

Here’s how you can fast-track your application in three easy steps…

  • Speak to a mortgage broker: There are brokers who specialise in Help to Buy mortgages. They know the process for the scheme inside and out and can help you blast through it quickly and accurately. They will make sure all of your paperwork is filed correctly and direct you to the ideal lender, so there will be no unnecessary delays.
  • Contact your local Help to Buy agent: You’ll need to secure your equity loan before applying for your mortgage and this is done through the Help to Buy agent in the area you’re buying a property in. Your broker will guide you through this step and provide you with contact details, but you can also find them on the government’s website.
  • Apply for your mortgage: Your broker will take the lead here and guide you through every step of the mortgage process. By using a broker, your chances of landing the best rates will increase exponentially. This is because the advisors we work with have access to the entire market, including broker-exclusive deals you won’t find on the high street.

Make an enquiry and we’ll match you with a Help to Buy mortgage specialist today.

How to calculate your maximum borrowing

If you need an idea of whether your mortgage will be affordable with the equity loan and your deposit funds factored in, try our Help to Buy calculator below.

Help to Buy Mortgage Calculator

Our Help to Buy calculator can tell you whether the mortgage you need is affordable with your equity loan amount factored in.

Enter an amount in pound sterling
This must be at least 5% of the purchase price
Deposit cannot be more than property value
Deposit too high
Deposit must be at least 5% of the purchase price
Enter an amount between 5% and 40% of the purchase price

Help to buy loan value:

Mortgage requirement:

How much can I borrow?

Enter the total income for all applicants

Lower range borrowing:

Higher range borrowing:

Your maximum borrowing is unlikely to match the property price when combined with your deposit funds and equity loan. Speak to a broker to find out what options are available.

Now that you have a rough idea of your maximum borrowing with your Help to Buy equity loan factored in, it's a good idea to speak to a mortgage broker who specialises in the scheme. They can provide you with bespoke calculations and make sure your get the best deal with the time comes to apply for your mortgage.

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Will the Help to Buy scheme be extended?

At the time of writing, there are no plans to extend the Help to Buy: Equity Loan deadline beyond the end of October and the scheme is set to end entirely on 31st March 2023.

The UK Government is also yet to reveal whether it is planning to unveil another initiative aimed at first-time buyers to replace it.

Are there other schemes you could apply for instead?

Yes. If you miss the Help to Buy deadline or decide the scheme isn’t for you, there are several other mortgage initiatives that could help you onto the property ladder.

They include…

  • Lifetime ISAs: These are savings accounts you can use to build up money to buy your first home. The government will add a 25% bonus to whatever amount you save each tax year, up to a maximum bonus of £1,000 per annum over up to 32 years.
  • Right to Buy: Other government schemes, such as Right to Buy, are set to continue after Help to Buy has ended. This one helps eligible people purchase their council property at a discounted price or no deposit, under the right circumstances.
  • Shared Ownership: This government scheme is a middle ground between purchasing and renting for those who can’t afford to buy outright. You can get a mortgage on a portion of your home and pay rent to a local authority or housing association on the rest. It is possible to increase your stake, up to full ownership, over time.
  • The mortgage guarantee scheme: Through this initiative, mortgages are available to borrowings with less than 10% deposit, but the scheme ends on 31st December 2022.

In addition to these schemes, there are other options you could fall back on if you miss the Help to Buy cut-off, including joint borrower, sole proprietor mortgages or using a guarantor.

You should speak to a broker before you get started to make sure you make the right decision.

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