Unlocking the Door to Homeownership for First-Time Buyers: A Guide to Government-Backed Schemes

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February 4, 2023

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First-time homebuyers may find it difficult to secure a mortgage due to the high cost of a deposit. However, there are several government-backed schemes available to help first-time buyers purchase a property.

The Help to Buy scheme, which was first launched in 2013 with other iterations of it since.  The aim of the scheme was to allow buyers to purchase a property with just a 5% deposit but it came to an end recently. However, the Help to Buy ISA, which is a government-backed scheme that helps first-time buyers save for a deposit, is still available for those who have already opened an account. Under this scheme, savers can pay in up to £200 each month and the government will top up their savings by 25% (up to £3,000) when they buy their first home.

If you are buying with someone who also has a Help to Buy ISA, both of you will get the 25% bonus. The ISA can be paid into until November 2029 and the 25% bonus can be claimed until November 2030.

Another scheme that is less well-known is the Deposit Unlock scheme; A Deposit Unlock Scheme is a government-backed scheme in the United Kingdom that helps first-time home buyers purchase a home by offering them a loan to cover the deposit. The loan can be used in conjunction with a mortgage and other financial assistance, such as the Help to Buy equity loan, to help buyers meet the upfront costs of buying a home. The goal of the scheme is to make it easier for people to get on the property ladder, particularly those who might not otherwise be able to afford the deposit on their own.

Shared ownership is another option for first-time buyers who are unable to afford to purchase a property outright. Under this scheme, the buyer purchases a share of the property and pays rent on the remaining share. As their financial situation improves, they can gradually increase their share in the property until they own it outright.

Additionally, the government also offers Starter Homes initiative. It is a scheme aimed at first-time buyers under 40 years old and allows them to purchase a new-build property at a 20% discount.

Lastly, there is also the Right to Buy scheme, which allows council tenants in England to purchase their council home at a discount.

All of these schemes can help first-time buyers overcome the challenges of purchasing a property, but it is important to research the different options and understand the terms and conditions before making a decision. It is very important to discuss your needs with us, so we can help determine which scheme is most suited to your individual needs.

Risk warning: Your home or property may be repossessed if you do not keep up repayments on your mortgage. You may be charged a fee for mortgage advice.

Published On: February 4th, 2023 / Categories: All News, First Time Buyer, Mortgages / Tags: , , , /

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