There’re loads of help available for first time buyers
There’re plenty of obstacles standing in the way of getting up the property ladder, or getting your foot on the first rung. Thanks to a number of incentives and government schemes, picking up a new build home might be the solution to some common roadblocks.
There are a number of schemes and initiatives to help first time buyers get onto the property ladder. You may not be suitable for all of them, but any help you can get pulling that initial deposit together will be welcome. Here are some to consider…
Shared Ownership helps with the cost
Shared Ownership allows you to buy a share of the property’s market value (usually between 10-75%) and pay rent to the landlord for the remaining share. The landlord could be the housing association or local council and you can increase your share in the property over time should you want.
Own New
Own New Rate Reducer is an option to purchase a new build property at a reduced interest rate depending on your deposit amount. These rates are only available for a fixed amount of time (between two to five years) and not all lenders offer them.
Lifetime ISAs
A Lifetime ISA allows anyone between the ages of 18 and 40 to pay up to £4,000 a year into an account and receive a 25% bonus from the government. You can keep paying into the Lifetime ISA until you’re 50, so it’s a great way to boost your savings.
Deposit Contributions
Some builders of new build properties offer cash incentives to help build up your deposit or pay for other costs incurred when moving home.
These contributions need to be declared to your lender, but could make the difference when trying to save your deposit.
Check out how much you can afford to borrow
Use our Affordability Calculator to work out how much you could afford to lend for your new home.
Help for self employed
Being self-employed doesn’t have to be a barrier to getting a new build for your first house. The principle of getting a mortgage remains the same; you need to prove you’re able to keep up with repayments. This may seem more complex for self-employed people, but there are some things you can do to help.
Get organised
Having a solid grasp of your finances is key to being able to prove your financial resilience. Organise your accounts and gather as much documentation as possible to prove your income, invoices and expenditure. This will help show lenders you’re in a stable financial position.
Have a track record of self employment
Demonstrating a consistent stream of income over time is important. By working with an accountant, or using accounting software, and being able to prove income for the previous two or three years will be preferential to lenders. Ensuring your accounts are well organised and your financial records are up to date will demonstrate your credibility to a lender.
Check out our New Homes Guide
Our New Homes Guide features more information and tips for buying a new build if you’re self employed.
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
Find the right incentive scheme for you
There’s plenty of obstacles standing in the way of getting up the property ladder, or getting your foot on the first rung. Thanks to a number of incentives and government schemes, picking up a new build home might be the solution to some common roadblocks.
We’ve got loads more information around incentive schemes for those looking to get a new build property.
Or are you thinking of buying a new build property, but worried your financial situation might set you back? We debunk five of the most common mortgage myths, so you can kickstart your homebuying journey sooner.
How much can you afford to borrow?
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