In this article, we’ll be discussing the wealth of options for first-time buyers in London…
As a first-time buyer in the London area, you need to make sure that you take advantage of any schemes available. Buying property is expensive, which is why any help you can get would be greatly appreciated.
There are a few different schemes available to help ease the costs of purchasing your first home. To find out more information on buying your first home, it’s worth getting in contact with help to buy solicitors.
Below we’re going to be discussing some of the different options you have when it comes to purchasing a property in London…
The Help to Buy Scheme
One of the most popular ways to get help buying a home in London is the help-to-buy scheme. This scheme is run by the government as a way to make purchasing a home easier.
There are three conditions for entering the help-to-buy scheme in London. The property has to be a new build, the building needs to be advertised by a registered help-to-buy provider, and it has to have a maximum asking price of £600,000.
The scheme works by giving you an equity loan. The government provides you with this loan, and it is up to 40% of the cost of the new property. You need to put down a minimum of a 5% deposit and a mortgage to make up the rest.
You will have to pay back both the mortgage and the equity loan over a given period. However, it helps first-time buyers by giving them a better chance at getting a mortgage. If you only need to find a mortgage that is 55% of the asking price instead of 95%, you have a much greater chance of being accepted.
Other Schemes for First-Time Buyers
There are other types of schemes that help people trying to buy a house in London for the first time.
For example, the “First Dibs in London” scheme. This is a voluntary scheme where housing associations and developers agree to restrict the sales and marketing of certain properties in the London area. There is a group of key housing developers in London who have agreed to restrict new build homes up to the value of £350,000. They’re only available for London residents for the first three months after the build is ready to be sold.
This means that if you live in the London area, you have three months to make a purchase. It’s much easier to buy a property when you don’t have to compete with international buyers or people from other parts of the country.
Discount Market Sales
Another option for people who want to purchase a property in London is the discount market sale. It’s a home ownership product that is designed to be low-cost. A housing provider will offer you a discount on the purchase of a new building. The criteria to be eligible will vary depending on your location, but you will normally be required to prove you can live in London or have a household income within a certain level.
Shared ownership is normal for purchasing properties in any part of the country, including London. Essentially, you own a percentage of the house and pay rent on another percentage of the house. It depends on where you are as to the exact rates you pay, but it’s a way to purchase a property and slowly own more of it over time.
Buying Property in London
There are plenty of schemes for first-time buyers in the London area. It’s possible to purchase property, but you have to make sure you look for all the best resources.
The help-to-buy scheme is probably the most accessible and useful of all the schemes available. It’s easy to get signed up for, and it makes acquiring a mortgage much easier. The only restriction for this type of scheme is the 5% deposit, but it can be useful for a lot of first-time buyers.
Please be advised that this article is for general informational purposes only, and should not be used as a substitute for advice from a trained financial professional. Be sure to consult a financial professional if you’re seeking advice about buying or renting a home. We are not liable for risks or issues associated with using or acting upon the information on this site.