As a first-time buyer, you may be finding that it has become increasingly challenging to get onto the property ladder. An ever-changing property market and an often-unstable economy means that first time buyers are having to get creative with their property buying strategies. However, there are ways to make that first step towards owning your own property easier. The governments Help to Buy scheme is one option to consider.
As a first-time buyer, it can be daunting to think about saving enough for your mortgage deposit. You may wish to consider the Help to Buy scheme as a good foundation point for beginning the process. First time buyers can benefit from the Help to Buy scheme by receiving direct help from the government that can be used towards their deposit. This could provide a leg-up for those planning to save funds for their deposit and anyone needing a financial boost towards home ownership.
How Does The Help To Buy Scheme Work And Who Qualifies?
The Help to Buy scheme is available exclusively to first time buyers. The government provides an equity loan, lending first time buyers in England money towards buying a newly built home. This must be your main residence and cannot be used to purchase a second home or a buy-to-let property.
How Much Will You Receive From The Scheme?
Firstly, it is important to note that you will need to save a deposit of at least 5% of the purchase price yourself. You can then borrow 20% (London-based purchasers can borrow 40%) of the property price with the Help to Buy scheme. This amount remains interest free for five years. You then borrow the remaining amount from your mortgage lender. More details can be found on the government website.
What To Consider When Looking For Your First Home
When considering what to look for in your first home, you should first research your local estate agents and what they have to offer. Estate agents in Chelmsford and around the UK all have different and exciting properties to browse. Don’t be afraid to get in touch with friends and family to ask which estate agents they have previously used and who they would recommend. Word of mouth and personal recommendations can go a long way.
Purchasing your first home is different for everyone. It is advisable to think about whether this first purchase will be a ‘steppingstone’ onto the property ladder before finding your forever home, or whether you intend to save enough to find and purchase your dream home outright.
Don’t forget to allow enough funds in your savings for solicitors’ fees and surveys. These vary in price depending on which solicitor firm you use and the type of survey you choose to proceed with. Don’t be afraid to ask as many questions as you need to throughout the home buying process. Trust your gut and you’re sure to end up with a fantastic new home!