Schemes available for first time home buyers in the UK.

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Getting a mortgage can be a super-confusing. We felt that the process would be so much easier for first-time buyers if the answers around mortgages were readily available, without the usual confusing jargon… So here we are! In In part #1 of our Home Ownership for First Time Buyers series we help you know more about the schemes available for first time home buyers in the UK!

So without further ado…

QUESTION #1

Hi Sam, as a first-time buyer I’m finding it hard to save enough money. What government schemes are available to help me afford a deposit?

Hi Cameron, I’m sure you’ve heard the name before, but we’d really recommend taking advantage of the Help to Buy schemes! These come in two forms.

The Help to Buy ISA is a type of ISA designed to help first-time buyers like yourself save up a deposit for your home. The government will add a lovely 25% to your savings, up to a maximum of £3,000 on savings of £12,000.

Alternatively, with the Help to Buy Equity Loan the Government will lend you up to 20% of the cost of a newly built home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest.

Both should be considered if you’re looking for a new home, but don’t delay too long, because these schemes won’t be available forever.

Hope that helps Cameron!

QUESTION #2

Hi Sam, I’m currently renting but it’s starting to feel more and more like a waste of money, what schemes are available to help me buy the house? - Robyn West, Paddington

Good question Robyn! There are actually a couple of schemes available for first time home buyers in the UK using which you can purchase the home you’re living in.

Right to Buy could apply to you if you are currently renting a home from your local council. If so, you can likely purchase the property at a discounted rate. The size of the discount does vary however, based on where you live, and the type of property.

Alternatively, you may be able to purchase part of a home from your current landlord using the Shared Ownership scheme. By purchasing between a quarter and three-quarters of the home, you can pay a discounted rent price on the rest and can choose to buy up to 100% of the property in future.

So if rent is burning a massive hole in your pocket – you may want to look into these!

QUESTION #3

Hi Warrington Mortgage Centre, I’m not looking to buy my first home just yet, but will be doing so in the next couple of years, are there any upcoming schemes I should be aware of? - Daisy Mitchell, Woolston

We’re glad to see you’re thinking about the process already Daisy! You’ll be much more prepared that way.

The Starter Home scheme is a new government plan, soon to be available for young first-time buyers.

200,000 new build homes will be available to first-time buyers with at least 20% off the market price, so it’s a massive opportunity to purchase your dream home, especially if you’re already saving!

Keep a keen eye out for development on this one…

Sam’s sign off

Thank you for all your questions, I’ve absolutely loved getting in touch with the first-time buyer community!

We’ve covered all the basics here, but if you have more questions, why not continue the conversation with us? Comment below and we’ll be more than happy to answer all your mortgage-based questions!

I’ll be back soon with even more Warrington Mortgage Centre knowledge, so you know exactly what you’re getting for your hard earned money. Until next time, feel free to check out the rest of our series here. Take care!

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Find out about saving and setting a budget as a first time buyer in our blog post by Warrington Mortgage Centre