We know that buying your first home can be a daunting experience, especially where the cost of the property you’re purchasing is concerned. This is where the numerous government housing schemes can be a real support for many first-time buyers.
From Help to Buy to Shared Ownership, there are schemes available designed to help first-time buyers climb onto the property ladder. Read on to find out more about the schemes available, our advice on Help to Buy and how it works.
Which government housing schemes are available?
When you begin your property search, you’ll notice that the places you look at will normally be advertised with the scheme that’s available for it. Generally, if it does not mention a specific scheme then nothing is available – but it costs nothing to ask!
The most popular affordable housing schemes for first-time buyers are Help to Buy and Shared Ownership. Since their introduction in 2013, the schemes have helped 100,000s of people across the country buy their first home, and the Government continues to invest in affordable housing projects.
How does Help to Buy work?
Put simply, in the Help to Buy schemes, the Government lends first-time buyers money within certain conditions to help make the property they want to buy more affordable.
See how the different Help to Buy schemes work here:
Help to Buy Equity Loan
Available on new-build homes, the Help to Buy Equity Loan lends the recipient up to 20% of the property’s cost. This means you’ll need to make up the rest with a 5% cash deposit and a 75% mortgage. As an added bonus, there are no loan fees to pay for the first five years after purchasing your home.
How does the Shared Ownership scheme work?
The Help to Buy Shared Ownership scheme is designed for first-time buyers who can’t afford the mortgage on 100% of their home. Instead, you can buy a share of your property – from 25% to 75% – and pay rent on the rest. When you are in a position to pay more, you can buy a bigger share of the property.
Please note, all the above housing schemes have certain conditions, so we recommend that you check your eligibility and terms with your Mortgage Advisor, Bank, Building Society, Financial Advisor and/or your Conveyancer or Solicitor.
You can read more about these schemes here.
For more information
Are you a first-time buyer looking at properties for sale in Southend or the surrounding areas? Not sure if Help to Buy will benefit you? We’re here to help you find your dream home and can advise you on the best ways of getting on property ladder within your budget. Get in touch with the team today – call us 01702 343060 or enquire here.
More help for first time buyers
For more tips on how to buy your first home, make sure you download our FREE first time buyers guide, which we’ve designed to support you throughout the process.
We know homes.