Now the Help to Buy Equity Loan scheme is closed to new customers, many first-time buyers may feel the first step of the property ladder is beyond their reach.
It’s not all doom and gloom though as there is plenty of help out there for anyone looking to take their first step into home ownership.
Since the start of the equity loan scheme in 2013, over £20 billion has been lent to help people secure a home.
The main attraction of the scheme was that it provided a solution to getting onto the property ladder with a small deposit – as little as 5%.
In light of the recently closed equity loan scheme, it is now time to consider what other schemes are available to first-time buyers.
Shared Ownership
Essentially, you’ll purchase a share of the property and rent the rest.
The share you buy is usually between 10-75% of the property’s market value.
You’ll still have to put down a deposit, often between 5-10% of the share you’re buying, and you can take out a regular mortgage for the rest.
With a smaller deposit and mortgage amount, this scheme can be a good way to get onto the property ladder.
Mortgage guarantee scheme
The mortgage guarantee scheme helps first-time buyers get on the property ladder (either through buying a new build or an existing home) with a 95% mortgage.
This means you’ll only have to save up for a 5% deposit.
First Homes scheme
With the help of the First Homes scheme, you have the opportunity to buy a house with up to 30% off the market value price.
This only applies to new build homes or existing homes that were originally bought as part of the scheme.
Lifetime ISA
The Lifetime ISA is essentially a savings account for your deposit with an extra benefit.
You can pay up to £4,000 each year into your ISA account and receive a 25% free bonus from the government (£1,000 maximum).
It’s a great way to get started saving, and you’ll get a higher return than any standard savings account.
Even though Help to Buy has ended, there are still plenty of schemes and incentives available to help you.
Working with the award-winning Mortgage Advice Bureau, we have an in-house professional mortgage adviser in each of our nine branches.
Using a sourcing system that is constantly updated they have access to 1,000s of different mortgages, many of which are exclusive deals unavailable to the high street banks.
This makes them ideally placed to find a mortgage to suit their particular circumstances, quickly and easily, which not only saves you time but ensures you don’t have to pay more than you need to for your mortgage.
Better still, our mortgage progression service will take care of all the paperwork, to help process your mortgage application as quickly as possible.
Contact our in-branch Mortgage Advisers to arrange an appointment to discuss your circumstances and help you find your perfect mortgage.
