What first-time buyer help is there?

Published: 08:45, 17 August 2022

Sponsored feature | Rachel Sackel, Mortgage Advice Bureau

Want to buy your first home? The good news is there are schemes available to help you become a home owner with a small deposit. There are also ways to boost your savings too. Let us talk you through your options.

Deposit Unlock

Have you heard about Deposit Unlock? It’s a scheme designed to help you buy a new-build home worth up to £750,000 from participating house builders with just a 5 per cent deposit. And home movers can use the scheme too.

Shared ownership

If your budget is tight, shared ownership may make home ownership more affordable. That’s because you only buy a share of a property, normally 25-75 per cent, and pay rent on the rest. This means you will need a smaller mortgage – and a smaller deposit too. After you’ve moved in, you can buy a bigger share of your home.

First Homes Scheme

The First Homes Scheme helps local first-time buyers and key workers buy a home by offering a discount of at least 30 per cent off the market price. You will need a minimum of 5 per cent of the discounted price as a deposit. And if you sell, the same percentage discount will be passed on.

95 per cent mortgages

You may be able to get a mortgage with a 5 per cent deposit on a property worth up to £600,000 with the government-backed mortgage guarantee scheme. This scheme can be used by first time buyers and home movers. But it’s only running until December 31, 2022, so move fast if you’re interested.

Help to Buy Equity Loan scheme

With the Help to Buy Equity Loan scheme, first-time buyers borrow an equity loan from the government of up to 20 per cent of the property’s value (up to 40 per cent if it’s in London) which means they can buy a home with a 5 per cent deposit. The scheme closes to new applicants this October though, so act fast to avoid missing out.

Need a deposit boost?

If you’re aged 18-39 you can open a Lifetime ISA. They are designed to help you buy your first home or for your retirement. You can put in up to £4,000 each tax year until you’re 50. And you will get a 25 per cent bonus on your savings from the government, up to a maximum of £1,000 a year. There are strict rules on how you can use your LISA savings so read the terms and conditions carefully first. But it could be vital first-time buyer help for you.

Can you help me get a first-time buyer mortgage?

Absolutely! We have a team of expert mortgage advisers ready to help you every step of the way. Call us today on 07375 886347 or visit our website at mortgageadvicebureau.com/cambridge.

Because we play by the book we want to tell you that your home may be repossessed if you do not keep up with repayments on your mortgage. There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances, but a typical fee is up to 1 per cent of the amount borrowed.

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