After the unfortunate events of the 2008 credit crunch, the government needed something to try and bring the mortgage market back to prominence. One of the ways they did this, was introducing “Help to Buy Schemes” to help first time buyers onto the property ladder.
There are a various different Help to Buy Schemes available, some which may be more applicable to your circumstances than others. Here is a list of the schemes that may be useful for you.
The Help to Buy Shared Ownership Scheme was brought in to give mortgage applicants the ability to buy some of their property, and pay rent on the remaining percentage.
You will typically own between 25-75%, though this is not always the case. The remaining percentage is likely to be owned by a local authority, such as council or housing association. When you come into more funds, you may be able to increase the percentage you own.
The way that your payments work is that you will be paying both mortgage and rent. This basically means you are paying 100% of the ground rent and service charge on your home. This is still the case, even if you have the minimum share amount.
Though not technically a Help to Buy Scheme, the Lifetime ISA often is forgotten. It isn’t typically a first port of call, though it can be very handy for anyone looking to secure a property as a first time buyer in Scunthorpe.
It works as a type of savings account where your money can grow tax-free. The government will also top up your savings by a further 25%, so if you can meet the the £4,000 maximum amount, you will get a nice little £1,000 bonus.
You have to meet specific criteria in order to use the Lifetime ISA. More information about this can be found by clicking the link below or booking in to speak with a mortgage advisor in Scunthorpe.
Last edited 02/08/2022