Buying a new home has never been easier with most developers offering a range of incentives and schemes to help out. In this article, we look in more detail at the Help to Buy and Shared Ownership schemes:
Help to buy
The Government's Help to Buy scheme is open to both first-time buyers and home-owners purchasing new build homes with a purchase price of up to £600,000. Buyers will need to contribute at least 5% of the property price as a deposit, and then The Government will provide a loan for up to 20% of the price which is interest free for the first 5 years. A mortgage of up to 75% covers the rest on the basis that you have a 25% deposit.*
Many buyers look at this scheme and think it's too good to be true, but thousands of buyers are taking advantage so we would anyone considering a move to contact us before the funding runs out.
You can buy a share in a new-build property (25% to 75% of the home’s value), either outright or by securing a mortgage, and pay the rest in the form of subsidised rent. In most cases you can then buy more of the home by increasing your share until you own 100%. This in turn will reduce your rent the scheme is designed for people who would not be lent enough money or could not afford to put a large enough deposit down on a mortgage for a whole property. There is also a shared ownership resale scheme as well, whereby you can buy the share from a current owner of an existing part buy/part rent home that has become available for resale. The homes vary greatly in terms of age, size and type.
However, not all mortgage lenders are willing to lend for shared ownership mortgages. If you’re thinking of purchasing a shared ownership property, speak to an Andrews Mortgage Advisors.
Buying a home is a big commitment, you need to make sure you have sufficient insurance cover to repay your mortgage and if you have a family that they are provided for if the unthinkable should happen. So do your research and speak to an advisor who can help you choose the most suitable schemes for you.
We don't charge for our advice. Instead, we simply charge a fee for processing your mortgage application. Our typical fee is £400, however the actual fee will depend on your circumstances.
Your home may be repossessed if you do not keep up repayments on your mortgage
*Terms and conditions apply.