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/ 23 Apr 2019

Help to Buy for First Time Buyers

So, you’re looking to purchase your first home. You’ve worked hard and saved enough to get a small deposit together, and you’re ready to start looking for mortgage options. But what’s the best way forward? How can you ensure you’re going to get the most for your money?

Help to Buy could be the answer.

Started in 2013, Help to Buy mortgage schemes aim to assist first time buyers in the UK to get onto the property ladder. In its current set up, the scheme exist in a handful of different forms:  Shared Ownership, Equity Loan and ISA.

Help to Buy: Shared Ownership – For first time buyers who can’t afford 100% of the property they’d like to purchase, this scheme offers you the chance to buy a share of your home (between 25% and 75% of the home’s value) and pay rent on the remaining share. Later on, you could buy bigger shares when you can afford to.

Help to Buy: Equity Loan – This scheme is specifically for the purchase of new homes in England. The Government lends you up to 20% of the cost of your newly built home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest.

You won’t be charged loan fees on the 20% loan for the first five years of owning your home.

Help to Buy: ISA – This option pays first-time buyers a government bonus. For example, save £200 a month and we’ll add £50, up to a maximum of £3,000, boosting your ISA savings of £12,000 to £15,000.

London Help To Buy – This one is for brand new homes in London. With this scheme, when you put down as little as a 5% deposit on a newly built home, you can get a Government equity loan – for up to 40% of the purchase price.

These schemes are often not straightforward to deal with. You should therefore only instruct a conveyancer with good knowledge of handling Help to Buy matters. At Hanne & Co we have a huge amount of experience with these schemes and offer a Help to Buy service that you can rely upon. Find out more here.

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