HTB Extension..Did I understand it wrong?

Preface12

I wonder if I could be shed some light here please. Apologies for y ignorance. So we're looking at buying our first home and it was our understanding that the scheme had been extended till Feb for completion, instead of December 2020. So we thought as we will be ready (ISA ready) to start the mortgage journey in January, we had until Feb to place an offer. Called Bellway today to book viewing and was told if we are using the HTB schemed we have until today or yesterday. MY head is actually spinning. S

Meh123

I know nothing of HTB but if the deadline for completion is February then putting in an offer jan/Feb  wouldn’t be in time. The term ‘completion’ with regards to buying/selling is the handing over of the keys ie. the purchase is complete. 

JGB1955

According to Help to Buy: Equity Loan scheme (2013-2021) | Help to Buy 

Scheme closes 31 March 2021

If you’re applying for Help to Buy: Equity Loan (2013-2021), you have until 31 March 2021 to legally complete your purchase and get the keys to your home. Ask your homebuilder and conveyancer to confirm you can meet this date.

Applications for this scheme end on 15 December 2020. This is to allow time for homebuyers to reach legal completion on their home before the funding ends on 31 March 2021.

K_S

Preface12 said:

I wonder if I could be shed some light here please. Apologies for y ignorance. So we're looking at buying our first home and it was our understanding that the scheme had been extended till Feb for completion, instead of December 2020. So we thought as we will be ready (ISA ready) to start the mortgage journey in January, we had until Feb to place an offer. Called Bellway today to book viewing and was told if we are using the HTB schemed we have until today or yesterday. MY head is actually spinning. S

@Preface12 There are two HTB schemes - the old one which ended (for applications) yesterday and someone in your situation can no longer use. And the new one which you can still potentially use if you (and the property you are looking to buy) meet the new eligibility criteria. The most fundamental eligibility criteria is that you must be an FTB as per the govt definition. Property wise, the price needs to fit inside the regional price-caps set by the government.

As an example, if the house you want to buy is in Greater Manchester and costs 350k, it may have been eligible for H2B under the old scheme but it would exceed the price-cap for the North West in the new scheme, which is in the region of 225k or so.

It could be the case that the Bellway property you are looking does not meet the new price-caps, hence what they told you.

I hope that makes sense.

MWT

As far as I am aware, new applications for the scheme in England which ends on 31st March closed yesterday (15th December).

For that scheme the homebuilder must have completed the property by 28th Feb and the final completion of the purchase must be by 31st March. It may be possible extend the final deadline if the property had been reserved by 30th June 2020 and the completion of the build had been severely delayed.   

Applications for the new scheme opened today

Preface12

Thanks very much guys. We understood this all wrong. We'll nothing we could've done as we can only use our LISA from January. We'll probably have to save up more as our cap in the Midlands is 255 as per the chat on new scheme. They say everything happens for a reason... I'll just have to wait and see. We want a big property and for 255k we're not sure we'll get what we are after. I am saddened but nothing we could've done. 

Getting_greyer

Preface12 said:

Thanks very much guys. We understood this all wrong. We'll nothing we could've done as we can only use our LISA from January. We'll probably have to save up more as our cap in the Midlands is 255 as per the chat on new scheme. They say everything happens for a reason... I'll just have to wait and see. We want a big property and for 255k we're not sure we'll get what we are after. I am saddened but nothing we could've done. 

You make an interesting point here.  I've been pondering if within new build estates  we will end up seeing a two tier allocation.  Where you have mid terrace priced on the htb limit, and then your 4 bed detached priced way above making HTBers unable to get the "more desirable" homes.  

When I first saw the new HTB scheme I thought that would be helpful and more aligned to helping the people that needed it most, but i have to remember that it's actually private firms that make the houses.

Preface12

I have a feeling that's what we are going to see. I personally think these prices are just too much for the newbuilds. The HTB scheme in my opinion just hiked up the pricing. It would've been our first home and we were really looking forward to that though we're not too keen on the scheme but on the other hand we need to buy now and the HTB was our only option of doing that. We'll just have to suck it up and keep saving the best we can. As heartbreaking as it is, it's not the end of the world. With everything going on nowadays, am just happy to still have my job, family is well and I can put food on table. 

Thrugelmir

Preface12 said:

We want a big property and for 255k we're not sure we'll get what we are after.

Focus on getting onto the ladder. The dream house can follow later. 

Preface12

Will do. Thank you