Schemes to Help you Get on the Property Ladder
Whether you’re a first-time buyer or someone who is re-entering the property buying market, this can be very overwhelming. From hiking property prices, mortgage rates and more, you can become disheartened over whether you’re even able to join the property ladder at all.
But there’s good news – there are various schemes you can look into to help you buy your new home. Whether its programs created by the government or those put in place by banks to encourage you to place a mortgage with them. To help you avoid the endless task of researching any form of assistance with purchasing a new home, we’ve put the info all in one helpful little guide. It’s worth noting that some schemes will have application dates that open and close throughout the year as well as some requiring a check-list needing to be met to proceed further with any claims.
Help to Buy (shared ownership and equity loan)
The governments most well-known scheme is the Help to Buy. There to help first time buyers onto the property ladder, the scheme allows you to partly own your own home with a minimum deposit rate.
One side to the scheme is the shared ownership. Allowing you to own a portion of your home if unable to afford the complete mortgage, you can own between 25%-75% depending on your deposit. The remaining percentage, you pay rent towards.
The Help to Buy equity loan scheme consists of a loan provided by the government, allowing you to top up your current deposit to purchase property. This loan tends to be in conjunction with new builds, where you’ll provide at least 5% of the deposit price and borrow up to 20% for the loan to meet the deposit. This is available to first time buyers and those who already have a property.
Right to Buy
A program created by the government, the ‘Right to Buy’ scheme helps those who are currently renting their Local Authority owned home. For those who are living in council housing, they have the ability to buy their current home through this arrangement. Right to buy not only allows you to buy your current residence but at a discounted rate. Depending on the region you live in, you could receive a discount of up to £87,200 (£116,200 in London). It’s important not to confuse Right to Buy with Right to acquire as the Right to Buy scheme applies only to council tenants.
Right to Acquire
Similar to the Right to Buy scheme, it allows you to buy the home that you currently live in at a discounted rate. This scheme applies to those who are housing association tenants and have been a public sector tenant for at least 3 years. You can receive a discount of between £9,000 and £16,000, depending on your region.
A new scheme looking to support first time buyers and key workers, it allows you to buy your current home at a discounted price compared to the market value. Depending on region the discount can be from 30% - 50%. The scheme does feature an eligibility criterion including the first-time buyer’s income mustn’t exceed £80,000 and the property’s value cannot be higher than £250,000 post discount.
Help to Build: Equity Loan
If you’re someone who fancies a challenge and are wanting to build your dream home then this scheme may be of most benefit. The Help to Build Scheme is a government given loan to those who want to custom build or self-build their own house. Allowing you creative freedom, the schemes loan amount depends on the estimated costs to buy a plot of land as well as build the home. The loan ranges from 5% to 20%, jumping to 40% in London, of the total estimated cost. The maximum amount you can spend is up to £600,000 to create your brand-new house, with the house taking the larger portion of £400,000 to build.
That was our quick and simple run-down of just a few schemes that can help you onto the property ladder sooner than you may have thought. Here at Arrow Conveyancing, we want to help you with the conveyancing side of moving into your dream home. To find out more about how Arrow Conveyancing can help, please feel free to contact us.
Arrow Conveyancing Ltd.
Call: 0116 266 5394
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The information contained in this article does not constitute financial advice or recommendation and should not be considered as such. Arrow conveyancing does not offer financial advice and is not regulated by the Financial Conduct Authority (FCA), the authors of this article are not financial advisors and are therefore not authorised to offer financial advice.