Help is at hand for first time buyers
A May 14th article in the Telegraph newspaper reported that the number of first time buyers has recently surged by 20%. According to the report: “The Council of Mortgage Lenders (CML) reports that 19,100 loans, worth a total of £2.4bn, were advanced to first time buyers in March, while total hometowns increased by 15% to £6.4bn”.
For first time buyers, now is the best time to buy since the economic crash. More and more funding schemes are available, helping young people to get on – or move up – the property ladder. Some of the more popular options include:
Help to Buy Equity Scheme
Under this scheme, the government will loan up to 20% of the value of a new build home. The buyer can repay this loan any time, or when the house is sold. There is no income cap constraint and the maximum home value is a generous £600,000. This option is available to all – not just to first time buyers, but also for those looking to move up the property ladder. You will need at least a 5% deposit.
Shared ownership schemes
Another popular option is the shared ownership scheme, which is provided through housing associations. Using this scheme, you buy a share of your home at between 25% and 75% of the home’s value, and pay rent on the remainder. You must take out a mortgage to pay for the lion’s share of the home. In order to be eligible, your household must earn £60,000 a year or less and you must be a first time buyer or a tenant in a council or housing association property.
New buy scheme
Similar to the Help to Buy scheme, the New Buy scheme allows you to buy a newly built home with a deposit of only 5%. The value of the home must be £500,000 or less and it must be your main home – in other words, you cannot buy to let, and you cannot purchase under a shared ownership scheme. While you don’t have to be a first time buyer, you cannot use the New Buy scheme with any other publicly funded mortgage scheme.
For more information, or to discuss your home purchase with Burt Brill & Cardens Solicitors, contact us on 01273 604123 or email firstname.lastname@example.org
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