As a first-time buyer, you might feel that you have your work cut out for you – especially in the current climate. Don’t get us wrong, buying a property can be very exciting, but at times it can also be difficult, stressful and a huge financial challenge.
If you are buying your first home and only residence and have never owned a freehold or have a leasehold interest in a property, then you are considered a first-time buyer. As a first-time buyer you can get help and support to buy your first home from several schemes.
We’ve rounded up some of the most popular schemes you should know about as a first-time buyer:
First Homes scheme
The First Homes scheme was launched by the UK government in June 2021. Under this scheme, if you are a first-time buyer, you could get a discount of between 30% – 50% off the price of a new-build property. The First Homes scheme is only available in England and the home must be a new-build or a home you buy from someone else who originally bought it as part of the same scheme.
To be eligible you must be:
- aged 18 or older
- a first-time buyer
- able to get a mortgage for at least half the price of the home
- buying the home as part of a household where total income is no more than £80,000 (or £90,000 if you live in London)
Help to Buy: Equity Loan
The Help to Buy scheme is exclusively for first-time buyers in England with a 5% deposit who want to buy a new build.
- The Help to Buy equity loan is interest-free for the first five years, and can be paid back at any time, up to the maximum term of 25 years.
- You can also repay all or part of your equity loan at any time.
- You can borrow a minimum of 5% and up to a maximum of 20%, or up to 40% in London, of the cost of a new-build home.
- You must buy your home from a homebuilder registered for ‘Help to Buy: Equity Loan’.
- The amount you pay for a home depends on where in England you buy it.
The Lifetime ISA scheme is created to help people save either for their first home or for retirement, so it can be used either to purchase your first home or to save for the future. To open a Lifetime ISA, you must be between 18 and 40 years old, and you can put in up to £4,000 each year until you’re 50.
The government will add a 25% bonus to your savings, up to a maximum of £1,000 a year and if you’re buying with another first-time buyer who also has a Lifetime ISA, you can both use it towards the same property.
Get professional support
There is a lot more support to help you when buying your first property and one extra support comes from our experienced conveyancing solicitors that can pass on their knowledge and advise you on all of your options.
Our DMA Law conveyancing team has years of experience helping first-time buyers and we would love to help you purchase your dream home. Get in touch with our conveyancing team and we can discuss all these schemes in more detail.