First time buyers: what help is available for me?

First time buyers: what help is available for me?

With the Help to Buy Equity Loan scheme closing to new applicants on 31 October, you may be wondering what other options are available?

The good news is, if you’re looking to get a step onto the property ladder, there is plenty of support available for first time buyers.

Let us talk you through your options…

Shared Ownership

If you have a small budget, Shared Ownership may be an option to consider.

Shared Ownership offers you the chance to purchase a share of a property, typically around 25%-75%, and pay rent on the remaining share. This means you’ll need a smaller mortgage and a lower deposit too. After you’ve moved in, you can buy a bigger share of the property too.

First Homes Scheme

The First Homes Scheme helps local first time buyers and key workers purchase a new build property by offering a discount of at least 30% off the market price.

The scheme will be launched on a site by site basis, so it’s always a good idea to keep a look out for any local announcements near you.

You will need a minimum deposit of 5% of the discounted purchase price, and if you decide to sell, the same percentage discount will be passed on to the next buyer.

Deposit Unlock

Have you heard of Deposit Unlock? The Deposit Unlock scheme is designed to help you buy a new build home from participating builders up to the value of £750,000 with just a 5% deposit. Plus, this scheme is also available for home movers too!

95% mortgages

Available for both first time buyers and home movers, this government-backed mortgage guarantee scheme offers the opportunity to get a mortgage with a 5% deposit on a property worth up to £600,000. It offers flexibility as you’re able to buy both older properties or new builds.

The scheme is due to end on 31st December 2022, so move fast if you’re interested!

Boosting your deposit

When saving up to buy your first home, you’ll most likely want to grow your deposit as quickly as possible.

If you are aged 18-39, opening a Lifetime ISA could be an option. They’re designed to help you save up to buy your first home or save for your retirement. You can put in up to £4,000 each tax year up until you’re 50, and you’ll also receive a 25% bonus on your savings from the government, up to a maximum of £1,000 per year.

There are strict rules on how you can use your LISA savings, so it’s important to read the terms and conditions carefully first.

Finding the right first time buyer mortgage for you

It may feel a little daunting as a first time buyer trying to find the right option for you. But that’s why our team of expert advisers are here to help guide you through the home buying process. So please get in touch!

The information on the Help to Buy Equity Loan scheme applies to England.