The government announced a few months ago that they would be introducing a new ‘help to build’ scheme similar to the ‘help to buy’ equity loan scheme. Has anyone heard anything more about this or details about how it might be structured? 
 

If it works the same as the ‘help to buy’ equity scheme then it would be a terrible deal for self-builders (as most self-builders see a ~30% profit on their build so the equity loan would essentially have a ~30% interest rate in the first year) so I’m hoping it’s not quite the same. 

Edited January 14, 20215 yr by miike

I believe there is some sort of Gov borrowing scheme in Scotland for self builders. Not heard about One in England.

4 hours ago, Big Jimbo said:

I believe there is some sort of Gov borrowing scheme in Scotland for self builders. Not heard about One in England.

 

Yes this https://www.mygov.scot/self-build-loan-fund/

 

Very limited £175k max borrowing and you need a mortgage promise for the end and have to stick to tight deadlines.

 

If you go over the deadlines you pay 9% interest, that is why I discounted it. 

Details of the scheme are here - https://www.gov.uk/government/news/10-billion-package-to-build-more-homes-and-level-up-communities

 

’The fund will support up to 660,000 jobs and unlock up to 860,000 homes.  This includes funding for:

 

a new ‘Help to Build’ equity loan scheme for people who want to build their own homes, providing access to low deposit mortgages’

 

Another write up about it here - https://www.granddesignsmagazine.com/self-builds/890-help-to-build-scheme

Edited January 14, 20215 yr by miike

Anybody heard anything further about the scheme?

 

Or was it one of those vacuous promises government seem to get away with without actually putting anything in place?

 

Simon

Had a look for more info as we have had a mortgage offer but was thinking it might be worth hanging fire a few months if the help to build scheme imminent and going to save us some money, couldn't find any solid info tho. Apparently its being launched in the Spring but nobody seems to no exactly what kind of help its going to be. One article I read said  the government would pay of 20% of the mortgage on completion of the build, another article that it would be mortgage with low deposit. Regardless of how it works theres bound to be a catch.

More info just got published today - https://www.gov.uk/government/news/over-150-million-funding-to-kickstart-self-building-revolution

19 hours ago, miike said:

More info just got published today - https://www.gov.uk/government/news/over-150-million-funding-to-kickstart-self-building-revolution

 

 But it looks like applications won't be open until the autumn. We were hoping to be half way through our build by then. ?

 

Mind you, it might not be worth it.  Sounds like it will be similar to the help to buy scheme.

 

Simon