Getting on the property ladder can be tough, but there are numerous schemes available to help you get started. From shared ownership to First Homes, MortgageWatch has got you covered.
The Cost of Buying Your First Home
Buying your first home can be a daunting experience, especially with the high upfront costs involved. However, with the right guidance, you can navigate the process with ease. One of the most significant costs associated with buying a home is the deposit. The ideal deposit amount varies from lender to lender, but generally, it’s recommended to put down at least 20% of the property’s value. This can be a significant hurdle for many first-time buyers, but there are deposit-saving schemes available to help.
Looking for ways to get on the property ladder
Deposit-Saving Schemes
One popular deposit-saving scheme is the Lifetime Isa. With a Lifetime Isa, you can save up to £4,000 per year and receive a 25% bonus from the government. The bonus can be redeemed when buying your first home or withdrawing money towards your retirement (after the age of 60). The key criteria for eligibility include being aged 18-39 and having a household income of £80,000 or less (£90,000 or less in London).
Another deposit-saving scheme is the Help to Buy Isa, which offers a 25% bonus from the government when buying your first home. The maximum bonus you can get when buying a home is £3,000 (on total savings of £12,000).
‘I was able to get on the property ladder thanks to the Lifetime Isa scheme. The 25% bonus was a huge help in reaching my goal.’ - Rachel, First-Time Buyer
Schemes to Make Buying Cheaper
Shared ownership is another popular scheme that can make buying a home more affordable. With shared ownership, you can buy a stake in a new-build property from a housing association and pay rent on the remainder. The key criteria for eligibility include having a household income of £80,000 or less (£90,000 or less in London).
The First Homes scheme is also available to first-time buyers, offering a discount of at least 30% on market value when buying a new-build home. Properties valued at up to £250,000 (£450,000 in London) are eligible, and the key criteria for eligibility include having a household income of £80,000 or less (£90,000 or less in London).
Discounts available on new-build homes
Schemes to Help You Get a Mortgage
The 95% mortgage guarantee scheme was introduced by the government to encourage lenders to offer 95% mortgages. To provide an incentive, the government partially compensates lenders who offer 95% loans if the borrower misses a mortgage payment.
Rent and Right to Buy Schemes
The Right to Buy scheme allows council tenants to buy their home at a discount on its market value. The discount you’ll be offered depends on how long you’ve been a council tenant and the type of property you’re buying, as well as its value.
‘I was able to buy my council home thanks to the Right to Buy scheme. It’s been a dream come true.’ - John, Council Tenant
Other Options for First-Time Buyers
Before rushing into any schemes, it’s essential to consider all your options. Can you get help from family? Can a broker find you something suitable? Could you borrow for longer?
Getting help from family
In conclusion, getting on the property ladder can seem daunting, but with the right guidance and schemes, it’s achievable. Remember to consider all your options and do your research before making a decision.
Getting on the property ladder
