In the UK, buying a home is more challenging than it once was. There are several reasons for this, but they can all be summed up in a few words ‘a lack of money’.
It is has become far harder for people to get the mortgage they need to either get on the housing ladder or to buy a bigger property. Larger deposits are being asked for and borrowers have to meet a more stringent criterion than they once did to secure a mortgage. However, for some there is help available and much of that help is coming from the government who have several schemes available.
The FirstBuy Scheme
The FirstBuy scheme is for first time buyers. Over 100 builders are taking part in the scheme that is designed to help 10,000 first time buyers to buy a home. First time buyers with an income of under £60,000 and a 5% deposit can qualify for the scheme. They are offered a cheap loan for up to 20% of the price of a new build house. When the house is sold, the loan is paid back.
In total, the government and house builders have set aside £500 million. This scheme is specifically designed to help people get past the hurdle of not being able to save the big deposits that are now asked for.
The NewBuy Scheme
The other major government run scheme is called NewBuy. This scheme is designed to help people to get past the problem of securing a mortgage and, to some extent, the deposit issue.
Applicants need to have at least a 5% deposit saved and must meet the credit criteria of the lender. The criterion varies from lender to lender, but most people with a reasonable credit history will qualify.
The scheme allows prospective homeowners to borrow up to 95% of the value of a new property that costs less than £500,000. It is not possible to use this scheme for a second home and the house much be wholly owned by the applicants. This means it is not possible to use it when buying housing association properties.
Both schemes are designed to help people to buy one of the thousands of new homes for sale in the UK. They are win, win schemes. These schemes allow people to buy the homes they could not otherwise afford or get finance for, and help house-building companies who would otherwise go under in business to remain viable.
Visit the What House site to find new homes for sale throughout the UK many of which qualify for these government schemes.