Help to BuyUnder the first phase of the Help to Buy scheme, launched in April, the government will give homebuyers in England equity loans of up to 20% of the price of a new property worth up to £600,000.

Homebuyers need to contribute at least 5% of the property price as a deposit, with a 75% mortgage to cover the rest.

Under the second phase of Help to Buy, which had been due to launch in January, the government will underwrite 15% of the value of a mortgage, allowing people to buy properties with a 5% deposit.

It will apply to all home purchases in the UK of up to £600,000.

Applications for loans from the scheme will now be brought forward to the week beginning 7 October but the loans will not be paid out until 1 January. Anyone hoping to complete on their home purchase using the second phase of Help to Buy before 2014 will not be able to.

 

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