Which Help To Buy Scheme Is Right For You?

05-Dec-2017

 

Buying your first house can be a bewildering experience. Saving for a deposit is made more challenging by student debt, high rent and low wages. To support more young people to get on the housing ladder, the Government has set up a number of Help To Buy schemes but it can be difficult to know which one is right for you.

 

Help To Buy Equity Loan

This scheme has been introduced for new build homes only and you will need a deposit of at least 5% of the property value. The Government will add an additional 20% to the deposit and you will not be required to pay interest on this loan for the first five years. Fees of 1.75% will then apply for the sixth year. Thereafter, the fees will be aligned with inflation.

 

Help To Buy ISA

If you are currently saving for a deposit for your first home, a Help To Buy ISA could be useful. Whatever you pay into the ISA each month, the Government will boost the amount by 25%. A maximum of £3,000 will be added to your ISA during its lifetime from the Government.

 

Help To Buy Shared Ownership

If you would prefer to own a percentage of your own home rather than continue to rent from a landlord, this shared ownership scheme lets you buy a portion of the property. You can gradually by a greater share over time until you own it outright. To begin, you will require a 5% deposit on the share you wish to purchase, which is much less than the total value of the property. You will pay monthly rent on the property until you can afford to increase your share of ownership.

 

If you are a first-time buyer and wish to know more about the options available to you, please arrange a free, no obligation consultation with our mortgage team. Please call 01352 754272 or email info@dandgifa.co.uk.

 

 

 

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