Is 2022 your year to get on the property ladder? Nowadays there are more ways to buy a home than simply getting a mortgage and putting down a deposit. So how can first time buyers take advantage of housing schemes out there today?
If you’re looking to get on the property ladder in 2022, there are plenty of ways you can do it. While you can buy a home simply by getting a mortgage and putting down a deposit, this can be difficult for some people especially if you’re looking to live in a sought after location like London. With plenty of housing schemes now available to help first time buyers get on the property ladder, 2022 could be your year.
Help to buy
A great way to buy your first home is through help to buy. Allowing you to put down a 5% deposit and cut out those big initial payments, help to buy is great if you feel your savings may be the one letting you down. Help to buy also offers you a 20% enquiry loan that carries 0% interest for the first five years. This means you can really get comfortable with your finances before having to pay any of it back. Help to buy also offers a 40% equity loan in London so the pressure is definitely off if you opt for the scheme in this central location. All the homes are also new builds and top quality so it’s a win win. With a range of homes available from houses for sale in West Drayton to Islington, you have plenty of choice when it comes to help to buy.
If you really want to ease yourself onto the property market, then shared ownership is ideal. Shared ownership allows you to buy a share in a property rather than the entirety meaning you won’t have to take out a huge mortgage to secure your dream home. You won’t have to share your home with anyone (unless you want to, of course) and you only have to pay a small rental fee to the housing association that will own the remaining portion of the property. You can begin by buying between 10% and 75% share and gradually increase this share overtime when you feel the time is right for you and your plans. As you only buy a share in a property you only need to put down a deposit on this share making it a lot easier to secure your dream home. With smaller mortgages and smaller deposits, shared ownership cuts out the hefty payments that get in the way of securing your spot on the property ladder. And with shared ownership homes in Medway to Berkshire, there’s something for everyone with this scheme.
Help to buy ISA
Another great way to get on the property ladder is through a “help to buy ISA”. These used to be offered by major banks and subsidised by the government but are now mainly available through online banks. This scheme will see your savings topped up by 25% up to £12,000. This means if you put in a maximum of £12,000, you will receive £3000 in top up. However, you are limited to just £200 a month in savings when it comes to this ISA and your initial deposit must be under £12,000. This scheme could be great if you’re simply planning for the future and you have a bit of time to save before you decide on your home.
So whether you’re looking for a shared ownership home in Hampshire or a property for sale in Sevenoaks under help to buy, ensure you know the options available to you and you could be moving in a lot sooner than expected.