How To Get Onto The Property Ladder
East Anglian Specialist Conveyancers, Hayward Moon, share their advice on how you can take your first step onto the Property Ladder.
If you’re looking at making your first step onto the property ladder, in today’s economic climate it can feel quite overwhelming and almost impossible to achieve. With property prices increasing and showing no signs of slowing down, first-time buyers need all the help they can get – and luckily, there are a few options, which can help make your dream a reality!
Help To Buy: Equity Loan Scheme
The government introduced the Help To Buy scheme in 2013, designed to help first-time buyers like yourself, get onto the property ladder. The Equity Loan Scheme allows you to buy a new-build home with a deposit of only 5%. The Government will own up to 20% of your home, meaning you’ll only need a 75% mortgage – a much more manageable mortgage loan to acquire. Find out more here.
Help to Buy: Shared Ownership Scheme
This scheme is aimed at first-time buyers living outside of London, who are earning less than £80,000 a year. The Shared Ownership Scheme allows you to buy between 25-75% of a home’s value and then pay rent on the remaining amount. This scheme is only available on new build homes, and your share of the purchase must be paid for through a mortgage or savings.
Help To Buy Savings ISA
Whether you’re hoping to buy a house this year, or 5 years down the line – we recommend opening up a Help To Buy ISA ASAP. The account, offered by most major banks and building societies, allows you to save up to a maximum of £200 a month – upon opening the account you can pay in up to £1200 – then when you come to withdraw the funds and buy your home, the government will contribute 25% on your final saving amount. Find out a list of participating providers here.
This is definitely something to think long and hard about, but co-buying has become an increasingly popular option for young people trying to get onto the property ladder – buying a home with a friend, or even several friends, can make the process of buying a lot more affordable. The terms and conditions of these applications can be a little more complex – for instance, some mortgage lenders will have rules on how much each applicant will be able to lend – so ensure you do your research first.