Saving to buy a house in the UK can be daunting, but there are some fabulous home ownership schemes that can reduce the financial burden.
Saving to buy a house in the UK can be daunting, but there are some fabulous home ownership schemes that can reduce the financial burden. Which is best for you?
Buy a house with as little as 5% of the cost upfront
Buying that perfect home is a dream that can feel daunting. Unless you already own property, the prospect of becoming a homeowner may feel impossible. There has been a significant decline in home ownership among 25 to 34-year-olds over the last two decades - thanks largely to wages failing to keep up with spiralling house prices.
It’s frustrating. But the good news is that you may be eligible for financial support from the government. There are a number of affordable home ownership schemes out there that can help you buy a house with as little as 5% of the price upfront. Here’s a quick introduction to the home ownership schemes:
Shared ownership: buy part of your property, rent the rest
If your household income is less than £80,000 (£90,000) in London, you can get support with your property purchase through the shared ownership scheme. By buying only a portion of your property (between 25% and 75%) and renting the rest from your local housing association, you can obtain more favourable mortgage terms and get started with just 5% of the property value contributed from your personal savings.
>> Find out more about shared ownership
Help to Buy equity loan: supercharge your deposit with a low-interest government loan
Whether you are a first-time buyer or a current homeowner looking to upsize, the Help to Buy loan can contribute towards your perfect property. It allows you to secure a mortgage for 75% of a property’s value with just a 5% deposit from your own savings. The remaining 20% of the deposit is provided by the government in the form of a low-interest equity loan that you have up to 25 years to repay.
>> Find out more about the Help to Buy equity loan
Help to Buy ISA: get up to £3,000 from the government for free
Sick of renting? Want to save for a deposit on your first home? Put your money in a Help to Buy ISA and the government will add a 25% bonus to your savings pot when you buy your first property. You can save up to £200 per month and earn up to £3,000 as a free bonus from the government. Buy with a partner and you can pool your Help to Buy ISAs to get up to £6,000 from the government towards your home.
>> Find out more about the Help to Buy ISA
All set? Let us help!
When it comes to buying a home, everyone has their own ambitions and their own personal set of financial circumstances. The schemes available can reduce a lot of the financial burden of buying property. But there’s still the small matter of actually finding your ideal property and completing the purchase.
Here at Belvoir estate agents Peterborough we have years of experience of assisting buyers who have utilised affordable home ownership schemes. From advising on locations to picking up the house keys, we can give you expert advice every step of the way. If you live in Peterborough and would like to discuss your options, please feel free to contact me directly. Don’t worry, there’s no charge for an informal chat.
This blog is written by Lottie, Lottie Hostead is Belvoir Estate Agency Peterborough’s Property Sales Manager. Born and raised here she is both a property expert with 10 years experience selling homes in Peterborough and a genuine local. If you’re thinking of selling your home here then give her a call for a free no-obligation valuation.