Which Home Buying Schemes Are Available?

Are you looking to buy a new home and don't know where to start? Don't worry, we've got you covered! Here at Home Focus we've made things easy for you. Check out all the home buying schemes below that could be avaliable to you! 

Help to Buy Equity Loan

You own 100% of your property, but only have to cover a percentage of the initial cost with your mortgage and deposit. You can defer the rest for a while as it’s covered by an equity loan. There’s nothing to pay on the equity loan for a few years, and the scheme you choose will determine whether you pay any interest after this and when you have to pay the loan back.

Shared ownership

This is also known as part-buy/part-rent. Shared ownership works by allowing you to buy a share (between 25% and 75%) of your property and pay a subsidised rent on the remainder, which is owned by a housing association or local authority. You’ll be expected to buy the largest share you can afford – but, before you panic, the key word there is “afford”, and you’ll be able to discuss what is right for you.

Save to Buy

There are two options offered by housing associations that will help and encourage you to save towards a deposit for a home. Rent to Buy will allow you to pay a reduced rent on the understanding that you will buy Key in the door of a new homethat specific home in due course. Intermediate market rent will provide you with a reduced rent to save for a deposit to buy elsewhere.

Am I eligible?

Any first time buyer with a household income LESS than £80,000 outside London, and £90,000 in London, will be able to apply for shared ownership, and for the Help to Buy Equity Loan, the criteria is even wider.

You could also be eligible if:
* You’ve owned a home in the past, but don’t own one now
* You need to buy a home of your own for the first time, for example after a relationship breakdown
* You own your own home but it’s
far too small for your needs – for example you have two children in a one-bedroom flat and you can’t afford to buy somewhere bigger
* You can’t otherwise afford to buy a suitable home in the area you need to live in.

You are NOT eligible for any affordable home ownership scheme if...
* You want to buy a property to rent out. Affordable home ownership funding is there to help people buy a home, not become a landlord
* You already own a home and now want to help your adult child or children to get on the property ladder. You can help them with their deposit, but it’s the children who would have to be eligible.
* CCJs or bad credit rating can make it more difficult to pass financial assessments but seek advice from a specialist mortgage advisor (SMA) on how to proceed.

Where do I start?

Deciding to buy a property can be pretty daunting decision to make. With common concerns ranging from scraping money together for a deposit, to getting a mortgage, it’s easy to see how buying a new
home could send your stress levels through the roof. But you don’t have to go through it all on your own. Just get in touch with your local Help to Buy agent – an organisation appointed by the government to coordinate affordable home ownership in a particular area. This agent will help you process your application so you don’t need to apply to every housing association in the area. If you’re in London, things are slightly different but there is an online portal to get you going. Head to london.gov.uk/homes.
June 5, 2019

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