You’ve decided that 2021 is the year you’d like to get a foot on the property ladder, but you’re not 100% sure about the best way to go about it, we’re here to help you out!
Now that there’s so many options for first time buyers, we’ve put together a summary of the main schemes that are currently available. Each of the schemes are designed to make buying a home more affordable, so you may be able to start your journey sooner than you think….
95% mortgages
The return of 95% mortgage deals means that some lenders are willing provide a mortgage loan when you have a 5% deposit. For example; if you’re buying a property that costs £150,000, you could put down a £7,500 and apply for a mortgage for the remaining £142,500. This means you may be able to get on the property ladder sooner as you don’t need to save up for quite as long. Our expert advice article on 95% mortgages gives a bit more information on how these deals work.
Click here to find tips on how to buy a property with a small deposit
Shared Ownership Scheme
This scheme gives everybody the opportunity to buy a property. You buy a share of the property and ‘rent’ the rest of it, which means the amount of mortgage you need to apply for is lower. Each month you’ll make a payment for the mortgage and a payment for the rent.
Shared ownership schemes often allow the opportunity for “staircasing”; this means that over time you’ll have the opportunity to increase the amount of the property you own and reduce the amount that you ‘rent’ (you’re not obliged to do this). Our expert advice article on the shared ownership scheme provides a more in-depth look at how this scheme works.
Right to Buy
If you currently live in a council or housing association-owned property, you may have the option to buy it from them at a reduced price under the Right to Buy scheme. The discount you’re eligible to receive depends on whereabouts you live as well as some other key factors; such as how long you’ve lived in the property and the type of property. You can find out more about the Right to Buy scheme here.
Forces Help to Buy
If you’re armed forces personnel, you may be able to take advantage of the Forces Help to Buy (FHTB) scheme to buy a property. The scheme allows participants to move to another property as well as buy their first home, subject to meeting certain criteria. The scheme is available until December 2022. Find out more about the current FHTB scheme here.
Expert mortgage advice
With so many mortgage options on the market, it’s important to get professional advice to determine which is right for your individual circumstances. Our mortgage advisers in Sheffield are not only experts, but they have access to over 90 lenders to help secure the right deal for your needs.
To book a free no-obligation appointment with a mortgage adviser in Sheffield, give us a call on 0114 3583237 or send us an e-mail.
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