News Reader.info

Getting a mortgage is hard for many at the moment as house prices have reached unprecedented levels. This makes it difficult to save for the all-important deposit needed but the state has

introduced schemes to help with this.

The Help to buy equity loan scheme was launched in 2013 and it is designed to help people buy a new build property.

In a nutshell, the scheme allows people to buy a property with a five percent deposit and it will be an available option until 2023.

Although it should be noted that on April 1, 2021 the scheme will be restricted to first time buyers only.

However, just like all financial circumstances at the moment, the scheme may be impacted by coronavirus.

READ MORE: UK housing market grinds to halt during coronavirus lockdown 

We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You

can unsubscribe at any time. Read our Privacy Policy

Many consumers may be worried about what coronavirus means for the help to buy scheme and the government has acknowledged this.

They have recently updated their website with a new page which answers some help to buy themed frequently asked questions. They have broken the questions down into seven distinct sections.

The first being centred on lockdown rules, a difficult circumstance which will obviously affect a person’s ability to move home.

The question set forth asks if it is possible to move forward with a home purchase and move in during this lockdown.

Thankfully, the government states that it is possible to do this as the homes will be newly built and therefore unoccupied.

They highlight however that the buyer and anyone else associated with the buying process must check the states recently released advice on home moving before taking action.

DON'T MISSMortgage expert issues warning amid coronavirus crisis [WARNING]Martin Lewis warning on bad mortgage holiday practices [EXPERT]FCA signature rules: Insight rounded up from industry

experts [INSIGHT]

The first question asked is “Will my Help to Buy: Equity Loan Authority to Proceed remain valid if I can’t move during the lockdown?”

The government details that if the mortgage lender has agreed to keep existing mortgage offers open for three months, the buyer’s authority to process will remain valid for the same period.

There is also a second authority to proceed themed question: “My Authority to Proceed is based on a valuation carried out before the lockdown. What happens if the value of the house I’m

buying falls?”

In a very relieving clarification, it is confirmed that the government will continue to honour help to buy equity loans agreed with home buyers before the lockdown.

From section three onwards there are many questions posited which should provide plenty of clarity for worried consumers.

The government go on to explain what the requirements are for a desktop valuation as well how long they are valid for

New homes are being built all the time and some people may reserve a development in advance of completion.

Some will, understandably, worry about the house being ready on time and the government advice that buyers should contact the house builders directly.

Some are continuing to work and others have stopped for safety reasons so there will be different approaches in how to handle it.

Another question detailed is: “I’ve reserved a home and have the go-ahead for a Help to Buy: Equity Loan, but I’ve lost my job due to the lockdown. Can I pull out of the deal?”

This is an unfortunate reality of the current climate and the government states that housebuilders will again have different ways of approaching this. They advise buyers to contact the

builders to discuss next steps.

Simply getting over the line will feel like an absurd challenge at the moment.

Thankfully, both the government and the industry recognise the exceptional circumstances.

The page reassures buyers that they can ask their help to buy agent to extend an authority to proceed if more time is needed or an equity loan has expired.

On top of this, they explain that mortgage lenders are working to find ways to extend their mortgage offer by up to three months to help customers who’ve exchanged contracts to move later if

necessary.

If contracts have been exchanged, the state highlights that the solicitor involved will need to request a confirmation to developer form from a help to buy agent.

Payment holidays are an entirely new thing that have been introduced and many people may still be wrapping their heads around how it will affect their finances.

Thankfully, this section is among the most detailed of the seven and the government answers the following questions:

The question asks if the government will accept electronic signatures where a legal deed of postponement is involved.

Interestingly, the government detailed that they’re currently working on this but they admit the situation isn’t perfect: “Currently the Land Registry continues to require a ’wet signature’

on deeds, so we’ve put in place a manual process to do this.

“However, given the current situation it’s taking longer than usual, but rest assured that we’re still completing all legal requirements for deeds. If you’re concerned about whether your

lender will need a wet signature for mortgage documentation you should contact them directly.”

See today's front and back pages, download the newspaper, order back issues and use the historic Daily Express newspaper archive.