Homebuyer schemes
Homebuyer schemes can help some people purchase a home, but they do not all work in the same way. Eligibility, location, the property and ongoing costs matter as much as the deposit needed at the start.
We’ll look at whether a relevant route may fit your circumstances and explain the mortgage alongside it. Scheme availability and lender requirements must be checked at the time; being eligible for a scheme does not guarantee that a mortgage will be approved.
Schemes can have income, ownership, local connection or property conditions. The rules differ across the UK and between providers. Check the actual scheme and home you are considering rather than relying on an example from another area.
With shared ownership, you buy a share and pay rent on the remaining share, alongside any mortgage and applicable service charges. Other schemes work differently. Add up the full monthly housing cost rather than comparing mortgage payments alone.
Understand any restrictions on selling, letting, buying a larger share or repaying assistance. Valuations, legal work and fees may be needed later. The terms should fit your likely plans, not just make the initial purchase possible.
A scheme name is not enough to show whether a property will be affordable for you. Ask for the eligibility rules, purchase terms and an explanation of the payments that could change over time. For shared ownership, the lease sets out important obligations, including rent and service charges. Your legal adviser should explain those obligations before you commit.
Some schemes are local, some apply to particular properties and others have closed to new buyers. The original Help to Buy Equity Loan scheme in England is closed to new applications; an existing owner may instead need to consider repayment or refinancing of their equity loan. Confirm the current position for your part of the UK and avoid treating an old scheme description as an available offer.
We’ll start with your circumstances and what you need from a mortgage, so we can explore the options available to you.
We’ll compare suitable deals from the lenders available to us and explain the repayments, fees and other costs.
If you decide to go ahead, we’ll guide you through your mortgage application and the information your lender needs.
Not necessarily. The mortgage is only part of the budget, particularly where rent or service charges are payable too. A smaller deposit can also affect available mortgage rates. Compare the complete commitment and leave room for household bills and future changes in costs.
Some shared ownership leases allow you to buy additional shares, known as staircasing. The terms, valuation requirements and costs depend on the lease and scheme. Do not assume the original price or deposit terms will apply to a later purchase.
Existing equity-loan arrangements have their own repayment and refinancing requirements. Bring the scheme documents and details of your mortgage so the commitments can be understood together. A new mortgage still needs lender approval, and valuation or legal requirements may apply to the equity loan.
Your home may be repossessed if you do not keep up repayments on your mortgage.
