First Time Buyers
Help for First Time Buyers
Being a First Time Buyer can be a daunting and overwhelming experience. The idea of viewing and purchasing your dream home is exciting, but the thought of saving for a deposit, making an offer, getting a mortgage and the rest of the process can be a little intimidating. It doesn't have to be scary, at Woodshires Financial we can help take the guesswork and the stress of your first-time mortgage.
We want to help make your dreams come true and, do so in a way that means you can enjoy the entire process. We do it, the Woodshires way. Get in touch by clicking the 'more information' button and speaking with one of our experts.
What is a Help To Buy Mortgage?
A help to buy mortgage does exactly what it says on the tin. It's a scheme ran by the government that offers an equity loan (From the government) for first-time buyers and existing homeowners so they that can afford to buy a home. The loan is available to use on newly-built homes.
Despite the appeal of the scheme, it is worth noting that there are some stipulations. The purchase price of the property must be no more than £600,000. As long as you have a 5% deposit for the home you wish to purchase, you can borrow up to 20% of the purchase price completely interest-free for the first five years. If you're somebody who lives in London, you can borrow up to 40% of the purchase price.
In recent times, the government confirmed that it will extend the 'Help to Buy' equity loan scheme from 2021 up until 2023. However, this extension that has been brought in is only available for first-time buyers purchasing a newly built home.
Shared Ownership Scheme
What is 'Shared Ownership'?
If you are in a position where you can't quite afford the mortgage on 100% of a home or property you are looking to buy, then the Shared Ownership scheme could be of interest to you.
Shared Ownership allows you to buy a share of the home (from 25% to 75% of the home's value) and pay rent on the part that the government owns. If you wanted to, later on you could buy shares if that is something you wanted to do.
With the Help To Buy: Shared Ownership scheme you can buy a newly built home, or an existing property through resale programs from housing associations. You will need to take out a mortgage to pay for your share of the home's purchase price (Or use savings to fund it), and it's worth nothing shared ownership homes are always leasehold.