The four government programs for first-time buyers that you should be aware of
SAVING for your first house is difficult, and with rising property prices, getting on the first step of the property ladder may seem unachievable.
Over the last year, property prices in the United Kingdom have reached new highs. First-time buyers have been impacted the hardest by the stamp duty tax rebate and pent-up demand for properties as a result of the successive lockdowns. The government, on the other hand, is attempting to make the housing market more accessible to first-time home purchasers. Here are four government programs that may be able to assist you in getting on the property ladder.
There’s a reason why millennials are referred to as generation rent.
Millennials are finding it difficult to save enough money for deposits due to the increasing cost of renting. When rising housing costs are factored in, many would-be first-time buyers’ dreams of purchasing a home become a pipe dream.
The government, on the other hand, has stepped in to make things easier for individuals looking to jump on the property ladder.
Here’s a rundown of the current programs available to assist first-time home purchasers.
This is the most recent plan available to first-time buyers.
A new government-backed mortgage scheme was launched on April 19 of this year.
This program lets first-time homebuyers and some current homeowners to acquire a mortgage with just a 5% down payment.
Because of the high cost of renting, many millennials are unable to save enough for a deposit. The scheme can assist first-time buyers in obtaining a mortgage of up to £600,000.
If you want to build a new home, take advantage of the government’s Equity Loan program.
As a first-time buyer, you can acquire an equity loan to help with the cost of buying a new-build property.
A minimum deposit of 5% of the property purchase price is required to be eligible for this financing.
You can then take out an equity loan to cover anywhere from 5% to 20% of the buying price of your newly constructed home.
If you want to live in London, you can borrow up to 40% of your income.
This permits you to purchase a home for a higher price than you could with just a mortgage.
Your interest and equity loan repayments are calculated using the percentage of your equity loan that you borrow.
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