After the disastrous credit crunch in 2008, the government brought in some backup to try and kickstart the mortgage market. They introduced ways to help First Time Buyers get onto the property ladder, these were called Help to Buy schemes.
There are a number of different Help to Buy schemes available, you may match with some of them and you may not match with others. Here is a list of the Help to Buy schemes and a couple of other similar schemes that you can access.
The Help to Buy Shared Ownership scheme was introduced to allow applicants to purchase a percentage of a property and then pay the rest back on rent.
The percentage of the property that you own is usually between 25-75%, though not always. The remaining percentage is likely to be owned by the housing association. This share can possibly be increased at a later date, perhaps when you have more money.
The way that your payments work is that you have to pay your mortgage plus your rent. So essentially you are paying 100% of the ground rent and service charge on the property. This is still the case, even if your share is the minimum amount.
The Armed Forces Help to Buy scheme was introduced in 2014 following the success of the Help to Buy Equity Loan scheme. This scheme had the same concept as its predecessor, however, this one targeted members of the armed forces.
If you are you fit into the criteria of the scheme, it could be a great option for you. The government has now extended the deadline/review date of the scheme to December 2022; we are hoping that it stays around as the scheme is a massive help to existing armed forces members who really need that extra help with getting onto the property ladder.
The Lifetime ISA is often a scheme that gets missed. It’s not a go-to scheme, however, it’s still very useful to be aware of it, it can help you secure a property as a First Time Buyer in Hull.
It’s essentially a savings account where your money grows tax-free. The government will also top up your savings by an extra 25%, so if you meet the £4,000 maximum amount, you will receive a nice £1,000 bonus.
You have to pass certain criteria in order to gain access to this scheme, you find all of these details on the Lifetime ISA website.