The new purchase assistance loans are reserved for first-time buyers | Purchase assistance program

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The latest version of the participatory purchase assistance loan program was opened on Wednesday, with first-time buyers now the only people authorized to apply for government assistance to access the housing ladder.

The system, which allows buyers to borrow up to 20% of the value of a new property, i.e. 40% in London, will no longer be available to movers and is subject to new regional price caps.

In London it can still be used to buy property costing up to £ 600,000, but in the rest of England prices will be capped at 1.5 times the average first-time buyer price in each region.

In the North East, for example, the maximum price of real estate it can be used on is £ 186,100, while in the East Midlands it is £ 261,900.

More than 270,000 properties were purchased with the first version of the program between April 2013 and March 31, 2020, with first-time buyers accounting for 82% of purchases, but it was feared that aid would not be targeted to those who had it. Not needed anymore.

Loans granted under the program are interest free for the first five years. Buyers pay a booking fee of £ 500 and must make a deposit of at least 5% of the value of the property.

Loans can be repaid at any time but must be paid when the home is sold or the mortgage is paid off.

First-time buyers who register will be able to move in from April 1, 2021. This version of the system should end in 2023.

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