Shared Ownership is where you can purchase a share of the property rather than paying the full purchase price. You can purchase anything between 25%-85% of the property and for the remaining share you don’t own, you pay a monthly rental payment to the housing association/local authority.
The mortgage guarantee scheme was launched in 2021 and is an initiative to increase the number of 95% mortgages available to help more people get on the property ladder. The scheme is available to first-time buyers or home movers. It must be your main residential property and have a purchase price below £600,000.
Forces Help to Buy allows service personnel to borrow by way of an advance up to 50% of their salary up to a maximum of £25,000 towards a house purchase and, in certain circumstances, could be used towards refurbishing an existing home.
Deposit unlock allows you to purchase a new build home with at least a 5% deposit. You could also borrow up to £750,000 on this scheme. This is only allowable with participating home builders. Click here.
If you are a first-time buyer, you may be able to buy a home for 30% to 50% less than its market value. The property has to have been built by a developer or have been bought from someone else who originally bought the home on the scheme. You need to be able to afford at least half the price of the home. You will need to check with the developer to see if they cover this scheme and if they do, the purchase price cannot exceed £420,000 in London and £250,000 anywhere else in England. In relation to income, it cannot exceed £90,000 in London and £80,000 outside of London.
A concessionary or family purchase is where you purchase the property at a discounted price from either a family member or a landlord. If it’s a genuine gift, the discount could be used as either the deposit or part of the deposit in some cases, subject to eligability.
There are plenty of lenders who are advocates for increasing the energy performance of our homes. With lots of lenders, if you have a better EPC rating, you may get a discount on the rate or potentially other benefits. We will check the EPC register when looking for a product to see if you could benefit from it.
Help to Buy would fall under shared equity, but there are other types of shared equity schemes out there that aren’t as widely recognized as Help to Buy. If you have a shared equity application you wish to discuss, please get in touch. The person providing the shared equity would provide this as a loan and if the property value increased so would the equity loan amount and it would work the other way around.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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