First-time buyer schemes from the Government
There are various home ownership schemes available from the Government that can help first time-buyers get the keys to their first property. One of which is ‘Help to Buy’, this scheme is most useful when you have a smaller deposit. It allows first-time homebuyers and homeowners the opportunity to buy a new or existing home with a deposit of just 5 per cent. There are limits on the value of the property you buy, such as, an equity loan for newly built homes in England are available for properties worth up to a maximum of £600,000. You must provide 80 per cent of the value of the property through your deposit and mortgage and the Government will grant a loan for the remainder.
There are also mortgage guarantees available for existing properties valued up to £600,000. Under this section of Help to Buy scheme, the guarantee is provided to your lender on up to 15 per cent of the value of your new home by the Government, rather than you. It is predicted to finish in December 2016.
