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Making First Time Buying More Affordable

First time buying is at its slowest for a number of years due to the slow movement

in the property market and the economic difficulties in the UK and the eurozone. The government is suggesting a variety of ways to help make buying your first home more affordable so you can make the first step onto the property ladder.

Home Ownership schemes: you could qualify to be part of a home ownership scheme should have bought no previous properties, both in the UK or abroad and have no financial interest in property with a lease of 21 years or more. This will give you the financial help you need to buy your first home. You can qualify for the following schemes should the combined income of your household amounts to less than 60,000. Your household may be you alone, you and partner or you and a friend. You can also qualify should you be renting a council house.

a) HomeBuy schemes: 'equity loan' - you recieve a loan towards the home's purchase price which has no fees for five years

'shared ownership' - you will buy a share of your home and then pay rent on the remaining share there are specialist shared ownership schemes directed at older people, those aged 55 or more and also at the disabled. This is referred to as the HOLD scheme. An individual with a disability can only apply for the HOLD scheme should the other HomeBuy opportunities in the area be unsuitable for their specific needs, for example they may not be able to cope with stairs.

With both of these forms of HomeBuy scheme you can slowly buy more of your property as you gain the financial capacity to over the years.

b) NewBuy schemes: This will help you if you are struggling to find the finances for a deposit on a new build; it will help you receive a loan of up to 95% of the full cost of your home. Obviously this scheme only applies to you if you are intending to purchase a newly built property.

All HomeBuy schemes are run by specialist HomeBuy agents, who will have copious information regarding different opportunities in your area of the United Kingdom. Within London the schemes are referred to as First Steps. All HomeBuy schemes must be authorised by the government and valid agencies can be found via the government's website.

by: Paul Howe
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