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It can feel impossible to get onto the property ladder. High asking prices, saving for a deposit, and getting a mortgage often seem out of reach, leaving buyers feeling like they’ll never achieve their dreams of homeownership.
However, there are a number of government house buying schemes and developer schemes designed to help. From boosting your savings to slashing the price of your dream property, there are some amazing opportunities if you know where to look.
We’ve listed a few of the top buying schemes to point you in the right direction.
One of the popular first-time buyer schemes: you could get a discount of 30 – 50% on a new-build home or one previously bought through the scheme.
Local first-time buyers in England and some councils may prioritise key workers or those on lower incomes. The property must not cost more than £250,000 (£420,000 in London) after the discount and your household income must be no more than £80,000 a year before tax (£90,000 in London).
- Smaller mortgage needed
- Smaller deposit needed
- You may be able to buy property in your local area when you might otherwise be priced out
- When selling your First Homes property, you’ll have to pass on the discount to the next buyer. (The discount is based on market value when the property is sold.)
- You can only sell on to someone buying through the First Homes scheme.
- There is no database of eligible properties: you’ll need to check with individual developers if any of their properties are included.
Contact the developer or estate agent and explain you’d like to make use of the scheme. They will check your eligibility and help with the application.
This may be one of the house buying schemes you’ve heard of which helps out first-time buyers, although it’s not restricted to this group. You buy a stake in a property and rent the remaining portion. Your stake can be as small as 10% and the idea is you increase it over time: “staircasing”.
This scheme is for people with an annual household income of £80,000 or less (£90,000 in London), and you must not be able to afford the whole deposit and mortgage repayments of a property that meets your needs. One of the following must also apply:
- You’re a first-time buyer
- You moved/own a home but can’t afford to buy one now
- You are forming a new household, e.g. after divorce
- You are already part of the scheme and want to move
- You may also need to have a connection/need to be in the area.
- You only need a deposit and mortgage for the portion of the property you’re buying
- You can increase your ownership stake as you can afford to
- You can get on the property ladder in an affordable way
- You don’t own the full property (although you may do in the future)
- Limited choice of eligible properties
- It’s likely you’ll be responsible for maintenance and repairs
- When you sell, your landlord has a right to find a buyer (if you don’t own 100% of the property)
Contact an estate agent/developer selling shared ownership homes. They’ll check your eligibility and give you information about the homes available. You’ll then need to reserve your chosen property, and your agent will guide you through the buying process.
Designed for those with small deposits, with this relatively new scheme, the developer insures your mortgage, meaning lenders may be willing to offer a 95% mortgage. This means you may be able to buy with just a 5% deposit while potentially enjoying lower interest rates on your mortgage.
Anyone buying an eligible new-build home can apply for the scheme (excluding buy-to-let investments).
- You can buy a new build with a small deposit
- You may benefit from smaller interest rates than without the scheme (thanks to the insurance)
- You still have to pay the full price of the property
- Not all new builds are eligible – check with the developer/estate agent
Speak to the developer/estate agent to check if they have relevant properties and your eligibility. They will help guide you through the application process and you’ll need to approach a participating mortgage lender.
This scheme offers lower mortgage interest rates for people buying new builds. Developers have a budget to offer for incentives and this scheme channels that fund into reducing interest rates over a fixed term.
Anyone buying a newbuild can apply for the scheme.
- You could save thousands on your mortgage repayments.
- When the fixed term ends, your monthly mortgage repayments will increase
- Not all developers or lenders are taking part in the scheme
Talk to developers/estate agents to find eligible properties and they’ll walk your through the process. They’ll be able to advise on mortgage lenders you could approach (not all are participating in the scheme).
A Lifetime ISA (LISA) is a tax-free savings account to be used for a first house purchase or in retirement. You can save up to £4000 per year and the government tops it up by 25%, meaning your account could be boosted by up to £1000 per year.
You must be aged 18-39 to open a LISA and can keep paying in until you’re 50. The scheme is intended to help people save for the deposit on their first house which costs up to £450,000.
- Tax free savings to help you get together a house deposit quicker
- 25% interest on the money you put in each year
- Gain an additional £1000/year max on your savings
- The money may only be used for a first property (or if you’re over 60/terminally ill)
- If you withdraw the money for another reason you’ll be charged 25%
- You can only put in up to £4000 per year
- The property you buy cannot cost more than £450,000
Talk to your chosen bank or building society about opening a LISA.
There are a number of other schemes you may want to look into. The below have more specific application criteria but offer great opportunities to eligible candidates:
- Armed Forces Help to Buy
- Home Ownership for People with Long-Term Disabilities (HOLD)
- Right to Buy
- Right to Shared Ownership
- Older Persons Shared Ownership (OPSO)
Most people buying a home require a mortgage. The options and procedure can feel overwhelming which is why we recommend getting independent mortgage advice.
In every Beresfords branch, an approachable expert from Flagstone in on hand to help talk through your options and guide you through the mortgage process. Pop into a branch or find out more here.
If you’re planning a property purchase, we’re here to help. Our friendly team are familiar with the current government house buying schemes, first time buyer schemes and other opportunities in place to support those approaching the market. Please get in touch with the Beresfords team to talk about your options.
