What you need to know about the new Help to Buy scheme?
If you’re a first-time buyer and have been saving for five years or more, then you’ve got good news: The government is relaxing the criteria around the existing Help to Buy scheme which helps first-time buyers get onto the property ladder with a 5% deposit and estate agents in Sittingbourne feel there isn’t a better time to get on the property ladder
The government is relaxing criteria around the existing Help to Buy scheme which helps first-time buyers get onto the property ladder with a 5% deposit.
Although Help to Buy is a government scheme, it has been extended and the government is relaxing criteria around the existing Help to Buy scheme which helps first-time buyers get onto the property ladder with a 5% deposit.
The extension allows borrowers who have already bought under the scheme and have less than a 5% deposit left on their mortgage to be able to get up to 20% equity from their home as long as they’ve lived there for at least three years. In some cases, this could mean that you don’t need any money at all from your family or friends above what you paid for the house when buying it. This is also a great way to buy new homes Sittingbourne if you have been looking for one for a long time.
First-timers who have been saving for five years or more will qualify, even if they have a total household income of £60,000 plus.
The government has relaxed the criteria around the existing Help to Buy scheme. The previous rules meant first-time buyers had to have been saving for five years or more, and could only apply if they earned less than £60,000 a year in total household income. Now, you can still apply even if you earn up to £100,000 a year – as long as you’ve been saving for at least one year. This is likely to make it easier for first-time buyers to get on the property ladder with this type of mortgage.
The new Help to Buy: Shared Ownership mortgage means that eligible homebuyers can take out an interest-only mortgage with a 25% equity loan from the government which will be added onto their share when they buy part of their home outright rather than paying rent on it forevermore (and paying off some more each time).
The minimum deposit required by lenders will be raised from 5% to 10% of the purchase price.
The minimum deposit is the amount you need to put down as a deposit on your home. It’s also known as an initial payment or reservation fee, and is often referred to as part of your mortgage offer.
Previous home ownership won’t disqualify you, as long as your current home was sold at least three years ago.
You can use the scheme if you have previously owned a home. However, there are some rules about how long ago it was and what kind of property you bought.
- You must have sold your previous property at least 3 years ago. You’ll also need to prove this by showing the authority that issued your certificate of title (if you’re buying in England) or Land Registry (if you’re buying in Wales).
- If you bought another property after selling your previous one, it needs to be at least 18 months since then – otherwise we’ll assume that money from the sale of that house was used towards buying yours! So if your last purchase was within 18 months, don’t worry – as long as no money from the sale went towards paying off debts or living expenses on either property.
- You can’t use Help To Buy with another government subsidy such as Shared Ownership or HomeBuy/Right To Buy
It doesn’t matter what your job is – if you’re in full-time work, you’ll probably qualify.
You must be in full-time work. In order to qualify for the scheme, you must have been in that job for at least three months. If you’re graduating from university or college and haven’t yet got a job, then we’ll still consider your application. However, you will need to be able to prove that within six months of applying for Help to Buy ISA or Lifetime ISA you’ll have secured full time employment with a salary of at least £21,000 per year (or the equivalent).
If you’ve been self-employed for more than six months and/or unemployed for more than six months, then this may also impact on whether or not we can help you with your purchase through our schemes.
You can use it to buy a new build or an existing (second-hand) property, as long as it meets certain standards in terms of energy efficiency and quality.
You can use it to buy a new build or an existing (second-hand) property, as long as it meets certain standards in terms of energy efficiency and quality. So far, so good. But what if you’re not working full-time? Don’t worry – the government has thought of that too.
It doesn’t matter what your job is – if you’re in full-time work, you’ll probably qualify for help with buying a home through Help to Buy. This includes jobs like being an apprentice or trainee, or having a part time job while studying at college or university.
The houses on offer may be slightly cheaper than those available under previous schemes.
And finally, you may be able to get your hands on a new build home through the Help to Buy scheme. In theory, this means that you’ll pay less for the same property than a similar one in an existing housing stock. There are a couple of reasons why this could happen.
First off, it’s cheaper to build new houses than renovate old ones (and especially expensive if you need to knock down walls or take down ceilings). Second of all, if builders are building houses with the intent to sell them through Help To Buy then they’re likely going to make sure they keep costs as low as possible by using good quality materials and energy efficient features such as double glazing windows and insulation around pipes for hot water systems.
First-time buyers now have more chances of getting on to the property ladder!
The scheme means that you have more chances of buying a new build house or an existing one (second hand) due to lower deposits, which were previously out of reach for those with less money. If you’re planning on buying a property in the next 12 months, it’s definitely worth considering this option!
The new Help to Buy scheme is a great addition to the government’s efforts to help first-time buyers get on the property ladder. It makes it much easier for those who have saved for five years or more and has made previous home ownership irrelevant. The only catch is that you’ll need a deposit of at least 10% – but if you can afford this, then we’d recommend taking advantage of this opportunity as the Government ‘Help To Buy’ Scheme ends on the 31st October this year.