Newsbeat guide to first-time house buying
Radio 1’s news arm, Newsbeat, has produced a handy guide to show young people that there is help out there to enable them to get on the property ladder.
However, as we have recently reported, the Royal Institution of Chartered Surveyors (RICS) suggests that the national shortage in available housing is tantamount to a ‘national emergency’.
And yet, there are a number of schemes out there already, and some on the cards, especially designed for first-time buyers.
As residential conveyancing solicitors in London, we specialise in ensuring property transactions are carried out efficiently and accurately to ensure a smooth process, so once you’ve got your funding in place we are here to help.
Schemes highlighted by Newsbeat!
- The Help to Buy ISA – the Government adds 25p to every £1 saved up to £200 per month and a maximum of £12,000 annually for first time buyers, for up to four years. (Scheme scheduled to commence in autumn 2015).
- Help to Buy equity loan – for first time buyers who only have a 5% deposit, the Government will loan 20% of the property value, interest free for five years. The loan is repayable when the property is sold. (Scheme planned to run until 31 March 2016.)
- Shared Ownership – provided through Housing Associations, the scheme allows eligible buyers to purchase a percentage of any scheme properties, from 25% to 75%, and pay a rent value on the remaining portion.
- Help to Buy: New Buy – any buyer, not exclusively first-time buyers, can buy a new build home with just 5% deposit. Run by the home building industry and offered by certain builders and lenders, the scheme is an extension of the FirstBuy equity loan scheme.
- Help to Buy: Mortgage guarantee scheme – The Government provides a guarantee to lenders for buyers – first-time and home movers, but not buy-to-let customers – with a 5% deposit.
So, perhaps it is not all doom and gloom for first-time buyers, young people who aren’t on astronomical salaries, and children whose parents won’t be able to leave them a sizeable inheritance. There’s plenty of information out there and residential conveyancing solicitors who provide a competitively-priced service, such as Healys LLP.
Find out more about residential conveyancing and buying a home on a lower income, by clicking here.
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