Want to buy your first home? The good news is there are schemes available to help you become a homeowner with a small deposit. There’s also ways to boost your savings too. Let us talk you through your options.
Deposit Unlock
Have you heard about Deposit Unlock? It’s a scheme designed to help you buy a new build home worth up to £750,000 from participating house builders with just a 5% deposit. Plus, homemovers can use the scheme too.
Shared Ownership
If your budget is tight, Shared Ownership may make homeownership more affordable. That’s because you only buy a share of a property, normally 25%-75%, and pay rent on the rest. This means you’ll need a smaller mortgage – and a smaller deposit too. After you’ve moved in you can buy a bigger share of your home.
First Homes Scheme
The First Homes Scheme helps local first time buyers and keyworkers buy a home by offering a discount of at least 30% off the market price. You’ll need a minimum of 5% of the discounted price as a deposit. And if you sell, the same percentage discount will be passed on.
95% Mortgages
You may be able to get a mortgage with a 5% deposit on a property worth up to £600,000 with the government-backed mortgage guarantee scheme. This scheme can be used by first time buyers and home movers. But it’s only running until 31 December 2022. So move fast if you’re interested.
Help to Buy Equity Loan scheme
With the Help to Buy Equity Loan scheme, first time buyers borrow an equity loan from the government of up to 20% of the property’s value (up to 40% if it’s in London) which means they can buy a home with a 5% deposit. The scheme closes to new applicants this October though, so act fast to avoid missing out.
Need a deposit boost?
If you’re aged 18-39 you can open a Lifetime ISA. They're designed to help you buy your first home or for your retirement. You can put in up to £4,000 each tax year until you’re 50. And you’ll get a 25% bonus on your savings from the government, up to a maximum of £1,000 a year.
There are strict rules on how you can use your LISA savings so read the terms and conditions carefully first. But it could be vital first time buyer help for you.
Can you help me get a first time buyer mortgage?
Absolutely! We have a team of expert mortgage advisers ready to help you every step of the way. Call us today on 07375 886347 or click here to arrange a call back.
The information on the Help to Buy Equity Loan scheme applies to England.