The government has offered several ways to help potential home buyers purchase properties. The Help to Buy schemes provide different options to reduce the financial burden of buying a home.
What is Help to Buy?
Help to Buy includes several different government programs that may assist you with the process of purchasing a property. There are programs where the government will match a portion of your contributions to a savings account. There are also programs that allow home buyers to buy a share of the home and pay rent on the rest.
Property lawyers can help you explore your financing options and determine whether Help to Buy is a suitable solution for your home purchase. You may also need assistance determining your eligibility for these schemes.
For example, older people and those with disabilities may qualify for the Shared Ownership scheme. As property law is complex, professional advice may be needed before applying for one of these home-buying schemes.
Help to Buy ISA
With the Help to Buy ISA, first-time home buyers may receive government assistance to begin saving toward the purchase of a first home. The future home buyer opens an individual savings account (ISA) at a participating bank or credit union.
After opening the ISA, you can begin depositing the money and the government provides a 25% contribution. However, there is a limit on the amount that you can deposit each month. During the first month, you can deposit 1200. After the first month, you are limited to 200 per month.
When you are ready to purchase your first home, you need to let your property solicitors know about your Help to Buy ISA. Your solicitor then applies for the government bonus and uses the funds toward purchasing your home.
Help to Buy Shared Ownership
The Help to Buy Shared Ownership scheme is intended for people who cannot afford 100% of the mortgage. With this option, home buyers can buy a share of the home and pay rent on the rest of the share. After buying the home, you can buy bigger shares to own more of the property.
You can use this option for newly built homes or existing homes. However, it is intended for first-time home buyers and households that earn less than a specified amount.
Help to Buy Equity Loans
With the Help to Buy Equity Loans, home buyers can receive a loan from the government to cover up to 20% of the cost of a newly built home. In most cases, you will only need to save a 5% cash deposit and obtain a 75% mortgage.
For more information on financing your mortgage, talk to our conveyancing team at Andrew Lee & Co. We can provide answers to any of your property law questions, including concerns over the Help to Buy schemes.
Call us today on 01622 750 101 for expert legal advice or property conveyancing.
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