First-time buyers hoping to use the ISA Purchase Assistance Program receive a warning that the program is about to close.
The program, launched in 2013 with the aim of rejuvenating the housing market, offers an equity loan to buyers to enable them to buy a new property with a down payment of just 5%. The government previously said the scheme would end in March 2023 and it was expected buyers would have until the end of December to secure a property.
Homes England, the body that administers the scheme, has now confirmed that the deadline has been brought forward to October to ensure buyers have enough time to exchange contracts and finalize their purchases before the scheme closes.
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Applications for the scheme will now close at 6pm on October 31, 2022. A Homes England spokesperson said dates had been agreed with the government and communicated to key stakeholders.
They said: “At the close of the program on March 31, 2023, homebuyers must have legally traded on their home. The deadline for new applications is the end of October to ensure consumers have enough time to complete their purchase.”
With Buyer’s Aid: Equity Loan, the government lends home buyers up to 20% (40% in London) of the cost of a newly built home. Customers pay a down payment of 5% or more and take out a mortgage of 25% or more to make up the rest.
The equity loan is interest free for the first five years, then at 1.75% from the sixth year, then increases each year according to inflation. The purchase aid (2021-2023) has regional price limits, set at 1.5 times the average first-time buyer price in each region of England.
Government figures show that by the end of last year, 355,634 properties with a combined value of £99billion had been purchased with an equity loan and the total value of loans advanced was £22billion. pound sterling.