Home buying schemes available to help you onto the property ladder

Whatever your circumstances, there should be an option below to help you obtain your very first property, and while it may seem an impossible feat these days, with the support outlined below, you can take that first step into the world of property ownership.

Here’s what’s out there and how they work.

Shared ownership

Under shared ownership, you buy a portion of a property and pay rent on the part you don’t own. Shares start as low as 25%, which reduces the deposit you need to buy a home.

Once you are in, you can staircase the portion you own bit by bit as your income grows and you are able to afford a larger mortgage.

Help to buy: equity loan

This government-run scheme offers first-time buyers in England a loan of up to 20% of a property’s value, which is interest-free for the first five years.

Not only does this reduce borrowing costs for first-time buyers, but it also means they only need a 5% deposit to secure the rest of what they need as mortgage.

Help to buy: ISA

Another branch of the help to buy scheme is an ISA available at a variety of banks. With a help to buy ISA, for every £200 you save the government will add £50.

The maximum the government will add is £3,000. But that is a significant boost to your savings if you’re working towards a deposit.

Starter homes

In England, the much-anticipated starter homes scheme is due to begin soon and you can register your interest online.

It will offer first-time buyers a 20% discount on new-build homes in participating developments up to a maximum of £250,000 outside of London and £450,000 within the city.

Rent to buy

The scheme enables aspiring buyers to live in a rented property for five years paying below the market rent, which is subsidised by the government.

This gives the renter the financial space to save for a deposit.

At the end of the five years, the renter must buy all or part of the property (under shared ownership). If they choose not to buy the property, they must move out.

Right to buy

If you live in a council home you may be eligible to buy it subject to certain criteria and conditions.

You might even be eligible if your home is no longer owned by the council but is still social housing.

And if you’re a housing association tenant, you might be able to buy your property under the right to acquire, which works in a similar way to right to buy.

Finding out which scheme could be right for you is the first step towards one day owning your dream home! If you do your research, and take advantage of the support being offered, there’s no reason why you can’t make that dream come true sooner rather than later!

For support buying your first home, or if you would like to see what we have available to buy, visit our website or get in touch today! We’re here to help.