If you're trying to get on the property ladder, it’s a good idea to find out about what help for first time buyers is available!
With the Help to Buy Equity Loan scheme, which has helped many first time buyers buy homes with a 5% deposit, closing to new applications on 31 October, what are your other options?
Have you considered Shared Ownership?
With Shared Ownership you'll buy a share of a property, usually between 25%-75%, and you’ll pay rent on the rest. And once you’ve moved in you can buy a bigger share of your home if you want to. The scheme is popular with people who have a smaller budget because as you’re only buying a share of a house you’ll need a smaller mortgage. And the knock on effect of that means you'll need a smaller deposit too. It's not strictly a first time buyer scheme as it’s available to other people too like if you used to own a home but can’t afford one now. So if you're investigating what help for first time buyers is available it's worth looking into.
Find out about Deposit Unlock
Deposit Unlock is designed to help you buy a new build home from participating house builders with just a 5% deposit. As well as being open to first time buyers, homemovers can use this too. And you can use the scheme to buy a home worth up to £750,000.
Could the First Homes Scheme be the answer?
This scheme helps local first time buyers and keyworkers to get on the property ladder by offering properties at a discount of at least 30% off the market price. If you're buying through this scheme, you’ll need a minimum deposit of 5% of the discounted purchase price. Then if you later sell the property the same percentage discount will be passed on. This scheme is being launched on a site by site basis so it’s a good idea to look out for any announcements near you.
95% Mortgages
And as a first time buyer, you may be able to get a mortgage on a property worth up to £600,000 if you have a 5% deposit with the government-backed mortgage guarantee scheme. You can also use the scheme if you're a home mover too. And it offers flexibility as you’re able to buy older properties or new builds. But this scheme is only due to run until 31 December 2022.
Help for first time buyers
When you’re saving up to buy a house, you’ll want to do everything you can to make your pot grow as fast as possible. So look into opening a Lifetime ISA. You’ll need to be aged 18-39 to open one and they’re designed to help you buy your first home or for your retirement. It’s important to read the t&cs as there are strict rules on how you can use the money. But if it looks suitable for you it’s a no brainer as you can put in up to £4,000 each year into your LISA until you’re 50. And you’ll get a 25% bonus on your savings from the government, up to a maximum of £1,000 a year.
How can I find the right first time buyer mortgage?
If you’re a first time buyer, choosing a mortgage can feel a bit daunting. But don’t worry, that’s where our team of expert advisers can help you. We can talk you through your options to help find the right mortgage for you. So please don’t hesitate to get in touch.
The information on the Help to Buy Equity Loan scheme applies to England.