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6 Government Schemes First Time Homebuyers Should Know About

//6 Government Schemes First Time Homebuyers Should Know About

6 Government Schemes First Time Homebuyers Should Know About

If owning a home is one of your goals, don’t let unfounded fears stop you. There are a good number of Government schemes to help your goal to be a first time home buyer become a reality. It is important to note that becoming a homeowner is a long term investment and for all capital intensive investments, it is wise to consult a professional for advice and insights.

  1. Help to Buy

This is a scheme that enables prospective home owners who have a small deposit to own their own home.

Another term is the Equity loan scheme. All you need is a 5% deposit and as much as 20% of the cost of your home, a newly built one is lent you by the Government, interest free for the first five years. The rest 75% is spread in your mortgage. Two points to note are, the purchase price must not be more than £600,000 and this scheme is available till 2021.

  1. Right to Buy

For occupants in England, Northern Ireland and Wales who rent their homes from the local council, this scheme allows qualified tenants to buy their home at a discount. The tenants must have rented from either the local council or housing association for a period of three years. In Northern Ireland, this scheme is called ‘house sales scheme’. In Scotland, the Government plans to end this scheme.

  1. Shared Ownership

In this scheme, you can buy a share of the home and rent the other share. The landlord here is usually the local council or housing association. Over time, you pay less rent on the share that is not yours and you may decide to buy up the remaining share. You may need a mortgage to pay for your share.

  1. Co-ownership in Ireland

You can buy a starter share, which is between 50-90% of the property which could be newly built or an already existing home, and increase the share at any time. Increasing shares is called ‘stair casing’.

This scheme is only for North Ireland.

  1. Shared Equity

This is similar to Co-ownership in Northern Ireland. In this case, you own a starter share and pay rent on the rest shares. You can however attain full ownership when you staircase till you achieve 100% ownership.

  1. Starter Home Scheme

This is a new government plan. If you are less than 40 years old, this is available to you. 200,000 new build homes if you have a minimum of 20% of the market price. These homes l not cost more than £250,000 outside London and £450,000 in London.

 

Let nothing holding you back. Seek expert advice and get a scheme that will set you on course to home ownership.

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By | 2017-04-25T15:49:15+00:00 January 7th, 2017|Personal Finance|0 Comments

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