Know About First Time Home Buyer Schemes Essential Facts
Many people in the city believe they will never be able to buy a home of their own when in truth, there are many types able to help you take that first step onto the property ladder. But, as a first time buyer, how can you decide which schemes are best for you as a 1st time home buyer?
When planning to buy your first home, I recommend meeting with a mortgage expert for mortgage advice first to explore what options are available to you. Then, you can schedule a meeting with one of our independent mortgage advisors, who will research the entire market to guarantee you get the best price possible.
Essential Facts About First Time Home Buyers Schemes:
#1 – Help to Buy ISA:
A Help to Buy ISA can be opened by anyone saving for their first house. Under this scheme, the Government increases your total savings by 25%, up to £3,000. You can deposit a lump sum of £1,200 when you first start your account. After that, you’re only allowed to pay a maximum of £200 per calendar month. The minimum government bonus is £400, which means you must have saved at least £1,600.
It’s important to remember that a Help to Buy ISA is for a person, not a home. If you want to buy a home with a partner, you may each receive a £3,000 incentive towards your first home.
Also Read: Will I Ever Be Able To Afford a House As a First Time Buyer?
#2 – Shared Ownership:
If you can’t afford a mortgage that covers the entire value of the home, you might be able to purchase a portion of it instead. You can own 25% to 75% of the property and pay rent on the remaining amount with shared ownership. Once you can afford it, you can buy a larger percentage of your home.
#3 – Equity Loan:
With an equity loan, the Government would lend you up to 20% of the cost of a new home. After that, you’d need a 5% down payment and a 75% mortgage to cover the remainder of the cost. It’s perfect for those who are having trouble making up large deposits.
Also Read: Ultimate Guide of Mortgage Guarantee Scheme
Conclusion:
Various other government-sponsored first time buyer schemes can assist in purchasing a home, which can be found on the government’s website. We can go over the best possibilities with you to identify the most cost effective option.
However, some are only best for people or people in specific situations; therefore, we recommend consulting with a knowledgeable independent mortgage expert first for mortgage advice. When applying for a mortgage, keep in mind that there will be a cost, which will be discussed before proceeding. The lender is also likely to pay a commission to the mortgage broker.
