Information for Help to Buy: Equity Loan customers during Coronavirus (COVID-19) (Update)

f you have a question that your house builder, solicitor or moving company can’t answer, please get in touch with your Help to Buy agent. Calls and emails may take longer to respond to in the current circumstances.

Find your Help to Buy agent’s contact details here

Frequently asked questions

Section 1 – Extending the current equity loan scheme

Are you going to extend the current Help to Buy scheme?

There are no plans to extend the existing Help to Buy: Equity Loan. It will end on 31 March 2021. A new Help to Buy: Equity Loan for first time buyers only will be available from 1 April 2021 to 31 March 2023. Check if you are eligible for the new Help to Buy scheme.

When does the Help to Buy: Equity Loan scheme change?

The existing Help to Buy: Equity Loan scheme ends on 31 March 2021. The new Help to Buy for first time buyers only starts on 1 April 2021. Check if you are eligible for the new Help to Buy scheme.

Who do I need to get in touch with to discuss my Help to Buy application?

Your Help to Buy agent can help you to progress your application to get an equity loan. Your house builder can answer questions about when your home will be ready to move into.

Section 2 – Moving home now

I’m using a Help to Buy: Equity Loan to buy a home, can I still go ahead during this stage of the coronavirus lockdown?

Yes. Help to Buy homes are newly built and unoccupied, so it’s possible to continue buying a home. You and your solicitor, mortgage advisor, house builder and anyone else involved in the buying process must check the latest government advice on home moving issued on 13 May 2020.

I’m buying a home with Help to Buy, what is the deadline for completion?

To get a Help Buy: Equity Loan with the existing scheme, you must complete the sale, pay for the new home and have the keys to move in by the 31 March 2021.

I’ve exchanged contracts on a new home with Help to Buy, can I complete my purchase?

Yes, as long as you complete the sale, pay for the new to home and have the keys to move in by the 31 March 2021.

What will happen if my Help to Buy home isn’t ready on time?

You will need to be the legal owner of the home by 31 March 2021. Please contact your house builder and solicitor to discuss your individual circumstances and next steps.

I’ve exchanged contracts but my builder says my home won’t be ready in time, what should I do?

It can take up to 12 weeks to do the legal work, exchange contracts and transfer funds when you buy a home with a Help to Buy: Equity Loan. To use the existing Help to Buy, you must be the legal owner of your new home by 31 March 2021. Ask your builder what they can do to have your home ready on time.

If I don’t complete buying my home on time I will lose money, what should I do?

Your builder must refund your reservation fee if you do not go ahead with buying the home. If you have already received an Authority to Proceed from us, your house builder may be entitled to make certain deductions from your reservation fee, but they must tell you about these first. There are no other fees to apply for a Help to Buy: Equity loan. Be aware that if you exchange contracts you are legally bound to buy the home.

Can I pull out of buying a Help to Buy home?

Yes. Your house builder will refund your reservation fee if you can no longer buy the home. If you have already received an Authority to Proceed from us, your house builder may be entitled to make certain deductions from your reservation fee, but they must tell you about these first. You will need to contact your Help to Buy agent and mortgage lender to explain your change in circumstances and to discuss next steps. If you’ve already exchanged contracts, you are legally bound to buy the home.

Section 3 – Authority to Proceed

Will my Help to Buy: Equity Loan Authority to Proceed still be valid?

Some mortgage lenders have committed to keeping existing mortgage offers open for three months. If your main mortgage lender has agreed to this, your Authority to Proceed will be extended up to the expiry date of your existing mortgage offer in line with current guidelines.

My Authority to Proceed is based on a valuation carried out before the lockdown started. What happens if the value of the house I’m buying has fallen?

The Government will continue to honour Help to Buy: Equity Loans agreed with home buyers before the lockdown. We won’t need a revaluation if your main mortgage lender is happy to proceed.

Section 4 – Valuations

Will you accept desktop valuations instead of onsite valuations during the current phase of the lockdown?

Yes. If your main mortgage lender is using a desktop valuation to support its mortgage offer, that is acceptable for Help to Buy.

I want to repay my Help to Buy: Equity Loan, can a surveyor come to my home to do a valuation report?

Surveyors are free to visit properties to carry out surveys. Surveyors should follow the latest government guidance and all public health guidance on social distancing.

I need a survey urgently for my remortgage and there is a long wait for a surveyor visit, what can I do?

During the current phase of lockdown we may be prepared to accept a desktop valuation, if you are able to demonstrate exceptional circumstances.

Each application for a desktop valuation will be considered at our discretion on a case by case basis.

This means you can get a Royal Institution of Chartered Surveyors (RICS) surveyor to provide a desktop valuation. You’ll need to meet certain requirements for the desktop valuation.

What are the requirements for a desktop valuation?

A desktop valuation can be carried out without a surveyor visiting your home if it meets these requirements:

• The surveyor must be approved by the Royal Institution of Chartered Surveyors (RICS). You can find an approved surveyor on the RICS database
• The surveyor must be independent of the estate agent looking after the sale of the property (if applicable).
• The surveyor must not be related or known to you, to avoid any conflict of interest.
• The survey must be provided on headed paper of the surveying company or approved surveyor (if they’re a sole trader), signed by the RICS surveyor, and addressed to Homes England. It needs to be in PDF or another non-editable document format.
• The surveyor must list at least three comparable properties and sale prices. These properties must be like-for-like in terms of type, size, age and within a two-mile radius of the property being valued, as per RICS guidance.

How long will the desktop valuation be valid for?

Desktop valuation reports are valid for three months from the date of the report.

Section 5 - Reservations

I’ve reserved a new home off-plan on a development site, will it be ready on time?

House builders are returning to work on sites, but they are not all taking the same approach. Contact your house builder to find out about their situation.

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 outbreak. Can I pull out of the deal?

Depending on your circumstances, house builders have the option to partly refund the reservation fee of up to £500 if you need to cancel. They’ll follow the reservation terms and conditions and can charge for any reasonable costs they may have incurred.

Contact your house builder to understand your options. If you’ve already agreed a mortgage with a lender, you need to contact them to explain your change in circumstances and to discuss next steps.

Section 6 - Completions

My Authority to Proceed with a Help to Buy: Equity Loan has expired, and I’m worried I’m going to lose my home. What can I do?

Get in touch with your Help to Buy agent urgently and ask for an extension on your Authority to Proceed. This will allow your home purchase to continue. You should check that your mortgage offer will remain valid if a new completion date is agreed. All 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.

I’ve exchanged contracts on a new home and have a Help to Buy: Equity Loan agreed, will I be able to complete my purchase?

Yes. As long as you have a valid mortgage offer on the date of completion and are able to complete prior to 31st March 2021.

If you’ve exchanged contracts and are concerned about your completion date and the need to extend your mortgage offer, please contact your lender.

I am in my home, but I have a snagging issue that I want the housebuilder to fix. Are they able to come to my home?

The first thing to do is speak to the housebuilder. Where possible the housebuilder should investigate remotely using video or photo evidence. If this is not possible, when the inspector visits your home put measures in place to minimise physical contact, for example, you and your family should stay in another room during the visit.

Section 7 – Payment holidays

I’m struggling to pay my mortgage and equity loan interest as I’m still not working due to coronavirus, am I eligible for a payment holiday?

On 17 March 2020, the Government announced mortgage lenders had agreed to support customers experiencing personal financial difficulties due to coronavirus with three-month payment holidays, and other options.

On 2 June 2020 the Financial Conduct Authority confirmed these arrangements are being extended until 31 October 2020.

They mean customers can apply to continue an existing full or part payment holiday for a further three months, or if they have not yet had a break, they can apply for one up until 31 October 2020.

They mean you won’t have to make any monthly mortgage payments for a set amount of time, but before cancelling any direct debits, please contact your main lender to ask for a payment holiday on your monthly mortgage payments.

If you’re struggling to pay the interest fees on your Help to Buy: Equity Loan, you can also apply to put these payments on hold for up to three months if you:

• Have contracted coronavirus;

• Need to care for a family member who has coronavirus;

• Are a permanent, temporary, full-time employee or contractor and had your working hours reduced either temporarily or permanently;

• Are a business owner or self-employed and your business has been affected.

Apply now using this online form to see if you’re eligible

I’m due to make my first interest Help to Buy: Equity Loan payment before 31 October 2020. Due to the current circumstances, can I take the payment holiday?

Yes. If you’re due to make your first interest payment, you’re entitled to request a payment holiday/delay.

What happens at the end of my payment holiday?

As soon as you can afford to begin repaying at the normal rate, please get in touch to let us know. Otherwise, your equity loan payments will automatically return to the normal monthly amount when the agreed payment holiday period ends.

The important thing to remember is that the amount you owe will increase by the interest amount that has not been paid during your payment holiday. Also, during your payment holiday, interest will continue to be added to your account at the same rate as is in your loan agreement. A repayment plan will need to be set up to settle the outstanding amount at the end of your payment break.

Section 8 - Remortgaging

I am in the middle of remortgaging and this involves a legal Deed of Postponement, will you accept an electronic signature on this phase of lockdown?

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.

For more information relating to coronavirus, please see the government guidance below:

Government advice on home moving during COVID-19

Government advice on staying alert and safe social distancing

NHS information on Coronavirus (COVID-19

Public Health England GOV.UK Page

Government advice for decontamination in non-healthcare settings

Government advice on how to sell a home

Government advice on working safely during COVID-19: Homes