The Help to Buy: Equity Loan Deadline is Fast Approaching

The Help to Buy Equity Loan scheme is ending, and the deadline for new applicants is 31 October 2022.

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

Those who submit their paperwork on time will have until 31 March 2023 to complete their mortgage. They must also have the keys to their new home by 6 p.m. on that date. Failure to do this will result in the non-release of equity loan funds.

How to secure a Help to Buy mortgage quickly

With less than a month remaining to lock down a Help to Buy: Equity Loan, submitting your application as quickly as possible is advisable 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: Some brokers 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 ensure all 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 where you’re buying a property. 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 more of the 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 deposit funds factored in, try our Help to Buy calculator below.

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 has yet to reveal whether it plans 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, several other mortgage initiatives 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 32 years.
• Right to Buy: Other government schemes, such as Right to Buy, are set to continue after Help to Buy has ended. Under the right circumstances, this one helps eligible people purchase their council property at a discounted price or with no deposit.
• Shared Ownership: This government scheme offers 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. Over time, you can increase your stake, up to full ownership.
• The mortgage guarantee scheme: This initiative makes mortgages available to borrowers with less than a 10% deposit. The scheme runs until June 2025.

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.

It would help if you spoke to a broker before you start to ensure that you make the right decision.