Help to Buy loan for first-time buyers is coming to an end this October

The Help to Buy: Equity Loan Scheme getting first-time buyers on the property ladder is coming to an end this October, potentially foiling the plans of thousands hoping to secure their first home this year.

The loan has proven to be a huge hit among those buying their first property over the last year, due to the fact they can purchase a house with a 5% deposit, rather than the traditional 10%.

The government then gives a 20% deposit contribution for the first five years, completely interest free.

Through the loan, homeowners have also been able to purchase their property at 75% loan to value, which eventually unlocks better mortgage product deals down the line.

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However, with the HTB scheme due to come to an end in March 2023, all new applications must be completed by October 31st this year.

Back in 2018, the government first announced that the Help to Buy: Equity Loan scheme would run from April 1st 2021 to March 31st 2023 and, according to the Gov.uk website, there are no plans to extend or replace it.

So as the deadline looms, prospective buyers here in Manchester are scrambling to get their finances in order and viewings booked in to take advantage of the scheme for one last time. 

And one of the unlikely places accepting Help to Buy loans is HD Media City, which is allowing buyers – first-time and those already on the ladder – to snatch up its luxury apartments with a 5% deposit.

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There are also 100 shared ownership units available, which is a good option for buyers wishing to purchase at a lower price point and with a smaller deposit.

But the Help to Buy scheme is the real star of the show for HD because, unlike similar flats in Manchester city centre, many of its one bedroom apartments fall below the HTB regional cap of £224k, allowing buyers to use the scheme to scoop up an apartment with only a 5% deposit.

Stephen Maskill, the regional sales manager at property developer Latimer, told Proper Manchester: “Almost all of the one bedroom apartments at High Definition fall under that regional cap, so it’s great that we can offer really nice luxury apartments with the Help to Buy scheme.

“It’s a very unique feature for this type of apartment to be available with that scheme.

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“This month we’ve done several Help to Buy sales already, so it’s clearly very in demand, it’s proving to be very very popular.”

HD was born with a vision to create an affordable and community-led luxury living space in the heart of the exclusive Media City.

Stephen said that in the wake of the Covid pandemic, a strong sense of community was at the forefront of the vision when building and developing the apartments.

He explained: “After millions of people were stuck and isolated in their Homes during the Covid lockdowns, we really wanted to deliver a community-led space with co working and recreational facilities for all, as well as somewhere that encourages a healthy work-life balance for residents.”

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Energy efficiency was also a priority during development, with each apartment having the highest EPC ratings possible amid the cost of living crisis.

Stephen said: “The EPC ratings in these apartments are exceptional, which means utility bills and heating bills will be extremely low and affordable because of how insulated and efficient the building is.”

As for the location, Stephen says now is the perfect time to invest in a home in Media City, which offers the ‘perfect mix’ of city centre living and suburban tranquility thanks to its acres of green spaces and cultural attractions, as well as its selection of restaurants and bars.

He also says Media City is anticipating ‘tens of millions of pounds worth of investment’ in the next couple of years, giving buyers all the more reason to get moved in while it’s affordable.

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He explained: “Media City has had a lot of money pumped into it already, but there’s a huge amount of investment and development yet to come… It’s going to keep growing into a larger destination, and will become just like Manchester city centre by the time it’s finished.

“So buyers will be getting in at a good time where values and prices will be driven by the investment that’s coming into the area.”

And offering a bit of advice to first-time buyers hoping to secure their first home, Stephen said: “Buy now, and get yourself locked into a five year mortgage product deal. Future-proof what you’re going to be spending for the next five years on a mortgage.”

To find out more about HD Media City, the homes it has to offer and which payment plan will suit you best, visit the Latimer Homes website.