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Friday 20 December 2024
Friday 20 December 2024
Friday 20 December 2024
Friday 20 December 2024
The UK housing market is continually shaped by government schemes designed to support homebuyers, particularly first-time buyers. These schemes play a critical role in stimulating the market, as first-time buyers often serve as the foundation for a healthy housing market. However, government schemes are constantly evolving, so it’s crucial to stay informed about the latest initiatives.
At Barrett Mortgages, we aim to make it easy for you to understand which schemes are valid at the time of your application. Our team stays up-to-date with the latest information and can help you navigate eligibility requirements to ensure you qualify for the right scheme. Below, we explore some of the current options available for buyers.
Forces Help to Buy Scheme
The Forces Help to Buy Scheme is a fantastic initiative aimed at helping members of the armed forces get onto the property ladder. While you don’t need to be a first-time buyer to qualify, the scheme is particularly beneficial for those purchasing their first home. Key features of the scheme include:
An equity loan of up to half your annual salary (including allowances), capped at £25,000.
Interest-free repayments deducted directly from your salary over a 10-year period.
There are specific eligibility criteria, and applicants must consult with the Forces Help to Buy team to confirm their qualification. Our advisors can guide you through the process and provide detailed support.
First Homes Scheme
The First Homes Scheme is designed to make homeownership more accessible for first-time buyers in England. It provides significant discounts of 30% to 50% off the market price of new-build homes. To qualify:
Applicants must be at least 18 years old and first-time buyers.
Household income must not exceed £80,000 (£90,000 in London).
Buyers need a mortgage covering at least half the property price.
Local councils may impose additional criteria, such as prioritising key workers or local residents. Introduced in June 2021, the scheme applies to specific homes, and discounts also carry over to resale properties.
Mortgage Guarantee Scheme
The Mortgage Guarantee Scheme helps buyers secure a mortgage with a deposit as low as 5%. Backed by a government guarantee, it applies to properties valued up to £600,000. This scheme is available to both first-time buyers and existing homeowners but excludes:
Buy-to-let and second homes.
Interest-only mortgages (repayment mortgages only are eligible).
Initially launched in April 2021, the program has been extended to June 2025, providing a valuable opportunity for buyers with limited deposits to step onto the property ladder.
Shared Ownership Scheme
The Shared Ownership Scheme offers flexibility for buyers unable to purchase a home outright. Key features include:
Purchasing a share of a property (as little as 10%).
Paying rent on the remaining portion.
The ability to increase ownership over time through ‘staircasing.’
While this scheme has been available for many years, updates introduced in April 2021 provide more opportunities. Buyers should consider the costs associated with staircasing and the restrictions on reselling properties under this scheme.
Lifetime ISA (LISA)
The Lifetime ISA (LISA) is an excellent savings tool for first-time buyers. Benefits include:
A 25% government bonus on annual savings of up to £4,000.
Funds can be used for purchasing a first home or for retirement.
Introduced in April 2017, the LISA remains a popular choice for savers. However, penalties may apply for withdrawals made for non-qualifying expenses.
Help to Build: Equity Loan Scheme
The Help to Build: Equity Loan Scheme is perfect for individuals interested in constructing their dream home. This scheme provides:
An equity loan based on estimated costs of land and construction.
A requirement of at least a 5% deposit.
Launched in June 2022, this program supports self-build projects for main residences and requires project approval. It’s a great option for those needing financial assistance to make their vision a reality.
Why Choose Barrett Mortgages?
Government housing schemes are invaluable resources but can be complex to navigate due to frequent policy changes. At Barrett Mortgages, we:
Stay informed about the latest government initiatives.
Guide you through the eligibility and application process.
Help you find the right scheme to suit your circumstances and goals.
Contact us today to discuss your needs and learn how these schemes can help you step onto the property ladder. Together, we’ll find the solution that’s right for you!
The UK housing market is continually shaped by government schemes designed to support homebuyers, particularly first-time buyers. These schemes play a critical role in stimulating the market, as first-time buyers often serve as the foundation for a healthy housing market. However, government schemes are constantly evolving, so it’s crucial to stay informed about the latest initiatives.
At Barrett Mortgages, we aim to make it easy for you to understand which schemes are valid at the time of your application. Our team stays up-to-date with the latest information and can help you navigate eligibility requirements to ensure you qualify for the right scheme. Below, we explore some of the current options available for buyers.
Forces Help to Buy Scheme
The Forces Help to Buy Scheme is a fantastic initiative aimed at helping members of the armed forces get onto the property ladder. While you don’t need to be a first-time buyer to qualify, the scheme is particularly beneficial for those purchasing their first home. Key features of the scheme include:
An equity loan of up to half your annual salary (including allowances), capped at £25,000.
Interest-free repayments deducted directly from your salary over a 10-year period.
There are specific eligibility criteria, and applicants must consult with the Forces Help to Buy team to confirm their qualification. Our advisors can guide you through the process and provide detailed support.
First Homes Scheme
The First Homes Scheme is designed to make homeownership more accessible for first-time buyers in England. It provides significant discounts of 30% to 50% off the market price of new-build homes. To qualify:
Applicants must be at least 18 years old and first-time buyers.
Household income must not exceed £80,000 (£90,000 in London).
Buyers need a mortgage covering at least half the property price.
Local councils may impose additional criteria, such as prioritising key workers or local residents. Introduced in June 2021, the scheme applies to specific homes, and discounts also carry over to resale properties.
Mortgage Guarantee Scheme
The Mortgage Guarantee Scheme helps buyers secure a mortgage with a deposit as low as 5%. Backed by a government guarantee, it applies to properties valued up to £600,000. This scheme is available to both first-time buyers and existing homeowners but excludes:
Buy-to-let and second homes.
Interest-only mortgages (repayment mortgages only are eligible).
Initially launched in April 2021, the program has been extended to June 2025, providing a valuable opportunity for buyers with limited deposits to step onto the property ladder.
Shared Ownership Scheme
The Shared Ownership Scheme offers flexibility for buyers unable to purchase a home outright. Key features include:
Purchasing a share of a property (as little as 10%).
Paying rent on the remaining portion.
The ability to increase ownership over time through ‘staircasing.’
While this scheme has been available for many years, updates introduced in April 2021 provide more opportunities. Buyers should consider the costs associated with staircasing and the restrictions on reselling properties under this scheme.
Lifetime ISA (LISA)
The Lifetime ISA (LISA) is an excellent savings tool for first-time buyers. Benefits include:
A 25% government bonus on annual savings of up to £4,000.
Funds can be used for purchasing a first home or for retirement.
Introduced in April 2017, the LISA remains a popular choice for savers. However, penalties may apply for withdrawals made for non-qualifying expenses.
Help to Build: Equity Loan Scheme
The Help to Build: Equity Loan Scheme is perfect for individuals interested in constructing their dream home. This scheme provides:
An equity loan based on estimated costs of land and construction.
A requirement of at least a 5% deposit.
Launched in June 2022, this program supports self-build projects for main residences and requires project approval. It’s a great option for those needing financial assistance to make their vision a reality.
Why Choose Barrett Mortgages?
Government housing schemes are invaluable resources but can be complex to navigate due to frequent policy changes. At Barrett Mortgages, we:
Stay informed about the latest government initiatives.
Guide you through the eligibility and application process.
Help you find the right scheme to suit your circumstances and goals.
Contact us today to discuss your needs and learn how these schemes can help you step onto the property ladder. Together, we’ll find the solution that’s right for you!
