The biggest challenge when it comes to buying a home can often be the deposit. Whereas the banks were once a little more lenient when it came to deposits, they are now set at 10% and this can certainly be a struggle if you don’t have an accumulation of life savings behind you. But amid the housing crisis, there are options you can take advantage of to get yourself onto the property ladder and dodge the momentous initial payment.
Help to Buy
This scheme is specifically designed to allow first time buyers access to the property market in a range of areas all over the UK. Set up by the government to provide a new route to home ownership, help to buy provides you with a 20% equity loan for the first five years and requires just a 5% deposit. The loan has no interest for the first five years so you can relax when it comes to getting your finances in check and leaving you with just 75% of the value of the home to take out a mortgage for, it really is making people’s dreams of owning their own home, a reality. All the homes are new developments and finished to a high standard varying from luxury city apartments to 4-bedroom family properties for sale in Greenwich.
Shared Ownership
Another way of buying a home on a far more manageable deposit is shared ownership. The new scheme allows you to part buy part rent a home and save as you go with a whole variety of locations, sizes and styles to choose from. You can begin by purchasing between 25-75% of a property and renting the rest from housing associations who are non-profit and will be sure to have your best interests in mind. In addition to this, you will also only have to pay a deposit on the portion you wish to buy so for 25% of a £200,000 home you will pay just £5000 to secure the home. From shared ownership in Sussex to Brighton, you can find something to suit your lifestyle while reaping the financial benefits.
Homes for Londoners
If you happen to be one of the first-time buyers in London feeling the effects of the housing shortage and paying extortionate tenancy costs, then homes for Londoners is an ideal solution. With ‘First Dibs’ you are prioritised if you are from or work in London above overseas buyers who are looking to buy property to rent out. Not only is this helping to reduce the costs of living in London but also helping commuters shorten their journeys to work and not have to move further out to afford a home. ‘London Living rent’ is also a fantastic scheme that ensures you pay reasonable costs to help you save for a deposit on a home. Under this programme, you will also be prioritised for shared ownership in the area.
So with strategies out there to help you get onto the property ladder in a far more hostile market, you can change the way you look at the future of housing and perhaps your own too.
