first time buyer

Getting on the property ladder as a first time buyer

We would all love to think of ourselves as a homeowner in a few years. Whether you’re still living with mum and dad, you’re saving up for a deposit or you haven’t quite decided your plan of action yet, there are tips and tricks you should consider before you decide where you’re moving to. With a variety to choose from and something to fit everyone’s circumstance you can find yourself on the property ladder a lot sooner than you may have expected.

Shared ownership

This scheme allows you to part buy part rent your property while paying a small deposit and acquiring a manageable mortgage. It works by allowing you to buy between 25%-75% of a property and renting the rest from a non-profit housing association. This often makes monthly payments with the mortgage and rent combined, less than paying rent alone from a private landlord. And what’s even better is that you only pay a deposit on the portion you wish to buy meaning for 25% of a £200,000 property you pay a deposit of just £5000. From shared ownership in Birmingham to Manchester, you can find your perfect patch to settle down without worrying about the cost.

Help to buy mortgage

This scheme is perfect for anyone just needing a little more help when getting onto the property ladder. Allowing you to pay just 5% deposit and with a government equity loan of 20% of the total value of the home, buying your first property is being made a lot easier. The government loan has no interest for the first 5 years and with a maximum of 40% in London you can take the pressure off your finances and get settled into your new home. You can buy a home with this mortgage of up to £400,000, so you don’t have to compromise when it comes to quality. So with properties for sale in London and an easy access route onto the property ladder, you can be moving in, in no time.

Help to buy ISA

If you’re just starting out the help to buy ISA is ideal in securing your future on the housing ladder. While you can initially deposit a sum of up to £1200 and up to £250 a month after that, the scheme will help you make a start on saving for your first home and get you on track. The ISA will provide you with an extra 25% on top of your savings meaning should you save the maximum of £12,000 you will receive £3000 on top of this. You never have to pay this back and it can certainly be a help when looking to put a deposit down or save for a house in the future.

So whether you choose to go with shared ownership in Norwich or you are opening a help to buy ISA in the next few weeks, knowing other routes when it comes to the housing ladder can be very helpful. So make your move and you could be moving in before you know it.

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