Affording your first home can be a daunting prospect. Thankfully, there is now a range of schemes available which have been created to help first-time buyers take their first step on the property ladder.
With the prospects looking brighter for first-time buyers, and house prices set to rise nationwide even further in the years to come, now could be the perfect time to buy your first home. Here are six ways to achieve your dream and buy your first home faster.
1. Help to Buy
There are two help to buy schemes available: the Help to Buy: Equity Loan and the Help to Buy: Shared Ownership.
Help to Buy is available to both movers and first-time buyers but is only applicable on new-build homes. The buyer is also only required to put down a deposit of five per cent.
2. Help-to-Buy ISAs
These ISAs are tax-free savings schemes for those wanting to build a deposit for their first home.
You need £1,000 to start, with minimum monthly contributions of £200 towards the deposit, and a bonus of 25 per cent given by the government on the savings you build, at a maximum of £3,000.
3. Right to Buy
Tenants in Northern Ireland, Wales and England who rent accommodation from the local council could buy their property at a discounted price.
However, you must have rented for a minimum of three years, with other possible conditions set by local councils.
4. Shared Ownership
This scheme allows you to purchase part of your home from the housing association or council while paying rent for the remaining share.
For your share, you must apply for a mortgage, which can range between one to three quarters of the property’s value.
5. Lifetime ISA
This new scheme has been created to provide a boost to retirement savers and new buyers alike.
Alternatively, if you are retired, consider equity release of your current property. For equity release Marlborough, contact a company such as https://chilvester.co.uk/equity-release/.
6. Starter Homes Scheme
The government proposed the Starter Homes Initiative in March 2015, with work now having commenced on this scheme.
The initiative will see the construction of approximately 200,000 affordable new homes, sold at a discount of around 20 per cent to first-time buyers aged from 23 to 40 years old.