Home Buying Schemes

If you live in England but are struggling to afford a full deposit to purchase a new build property, you may be able to get financial help through a number of the governments home buying schemes. The options are as follows:-

Help to Buy

The Help to Buy Scheme assists hard working people like you to obtain a mortgage of up to 95% of the purchase price by providing a loan of 5% of the purchase price to top up your own deposit of at least 5%. The scheme applies only to new build properties. It is available through certain builders in England only.

If you have at least a 5% deposit saved as a deposit you can ask the Developer, your Mortgage Lender or Independent Financial Advisor to see whether you qualify for the NewBuy Scheme

 

Help to Buy ISA

If you are saving for your first property and open a new Help to Buy ISA, the government will pay a first time buyer bonus of an additional 25% of your savings, on completion of the your purchase. See more at https://www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work/

 

Shared Ownership Schemes

If you can’t quite afford a mortgage on 100% of a property, the Help to Buy Shared Ownership scheme offers you the chance to buy a smaller share of a property (between 25% and 75% of the full value) and pay rent on the remaining share through a number of different Housing Associations until you can afford to buy a bigger share.

 

The Help to Buy: Shared Ownership scheme is available if your household earns below £80,000 per annum outside of London (£90,000 a year or less within London), and if you are a first-time buyer, you used to own a home but can’t afford to buy one now or are an existing shared owner looking to move.

See more at: https://www.helptobuy.gov.uk/shared-ownership/

 

Right to Buy Scheme

If you are a Social Tenant you might be able to buy your home at a discount from the Council under the Right to Buy Scheme. In order to qualify under the Right to Buy Scheme you must have been a council tenant or public sector tenant for at least five years. Any discount you receive will be based on how long you have been a tenant; where you live and the type of property you are purchasing

There is a set procedure you must go through to purchase your property under the Right to Buy Scheme and you should contact your Landlord who will be able to provide you with the appropriate application form.

Once you have purchased your Right to Buy property, if you then wish to sell your Property within the first ten years of your purchase, you must first offer the Council the option of first refusal to buy the property. Additionally if you sell within the first five years of your purchase you may be required to pay back all or a percentage of the discount you received to the Council