Find out more about Government led Help to Buy schemes
Help to Buy covers a number of UK Government programmes aimed at helping first time buyers or home movers with schemes for England, Northern Ireland, Scotland, and Wales.
We’ve covered the most popular Help to Buy and affordable home schemes here, but for more information and to find out which scheme is right for you, visit this government website.
Under the Help to Buy Equity Loan scheme, first time buyers in England are able to purchase new build properties with a 5% deposit by taking out an equity loan of up to 20% (up to 40% in London). As of April 2021, there are regional price caps on properties that can be purchased under the Help to Buy Equity Loan scheme.
For the first five years of home ownership, you won’t be liable for interest on the Help to Buy Equity Loan. The scheme closes in March 2023.
With Shared Ownership, if you can’t afford the mortgage to buy 100% of a property, you can purchase between 10% to 75% of its value and pay rent on the remaining portion until you can afford to buy a bigger share.
The property doesn’t have to be newly built as you can also purchase resale properties through housing associations via the Shared Ownership scheme too.
The Lifetime ISA is an option for first time buyers. You can open a Lifetime ISA from the age of 18 but must be under 40 and you can save in your Lifetime ISA until you’re 50. The maximum that you can save in a Lifetime ISA is £4,000 a year and the government will add a 25% bonus to your savings up to a maximum of £1,000 a year.
You can then use the money you’ve saved in your Lifetime ISA towards the deposit on your first home which you must buy with a mortgage and must not exceed the value of £450,000.
The Mortgage Guarantee Scheme supports lenders to offer more 95% loan-to-value mortgage products by supporting them with a government-backed guarantee. This means that buyers who have a 5% deposit can access more 95% mortgage products to enable them to purchase a property. The Mortgage Guarantee Scheme can’t be used to buy a new build home.
You can use the Mortgage Guarantee Scheme whether you’re a first time buyer or home mover for properties costing a maximum of £600,000 where you’re taking out a 95% mortgage. This scheme runs until 31st December 2022.