We understand how tough it is to get a first foot up on the property ladder these days. Unlike the rest of Europe, we, in the UK have an obsession to buy our own home, this has been our mind-set since the the dawn of time! Being encouraged from a young age to become a homeowner, it has almost become the 'norm' and as much a part of british culture as tea and wet summers!! With rents at an all time high its almost impossible to save for a deposit whilst you are renting. When the truth is that the monthly repayment of a mortgage is more often than not, considerably cheaper than a monthly rent payment! Crazy but true! With lots of young adults now having no option than to live with parents so they can save and with the average age of first time buyers in the UK having risen from 31 to 33 in the last 10 years it just brings it home how frustrating this is for those wanting to own their own home. Its a positive step in the right direction that the Government do offer help so a first time buyer can realise their dreams of being a homeowner in the UK. Many young people are not aware of these initiatives so here is some information and a short guide to what is on offer subject to meeting the schemes criteria.
What is Help to Buy Scheme?
The Help to Buy Scheme is a Government initiative to help first time buyers buy their first home. There are 3 different options in helping first timers buy their first home :-
Help to Buy Shared Ownership - you buy a share of your home (between 25% and 75% of the home’s value) and pay rent on the remaining share. You may have the option to buy a larger share at a later date.
Help to Buy ISA - if you are saving to buy your first home, save money into a Help to Buy: ISA and the Government will boost your savings by 25%. So, for every £200 you save, receive a government bonus of £50. The maximum government bonus you can receive is £3,000.
Help to Buy Equity Loan - 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.
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