We are all aware of the struggle that often comes with moving on from renting and finding a place on the property ladder. With rent in city areas often leaving us with very little left over to save for a deposit, it can certainly seem like an uphill battle breaking out of the usual monthly payments. But thanks to recent government schemes you can avoid the hefy deposits and still find a cosy place to call home. Buying your first home shouldn’t be something to fret about, knowing your stuff can really make a difference when it comes to buying your first home so relax and with a few simple tips you could be moving into your new home in no time.
No this is not a case of moving in with a group of people you don’t know and splitting the cost four ways. Shared ownership allows you to buy a portion of a property while renting the rest. You can start off by owning between 25%-75% of a property while renting the rest from a housing association. Rent is significantly lower than that charged by private landlords making overall monthly payments much lower than just renting alone, especially if you’re looking at shared ownership in London. In addition to this, the deposit is only 10% of the portion you wish to own and so this can amount to as little as 2.5%of the value of the property. These homes are available all over the UK from shared ownership in Manchester to Shared ownership in Croydon and range from bigger family homes to cosy city apartments. You can also increase the amount you own overtime and reduce your rent allowing you to climb the property ladder without moving anywhere at all.
Help to Buy ISA
If you struggle to save and find it hard to avoid dipping in and out of your savings account then a help to buy ISA can certainly help. This scheme allows you to save up to £200 a month into an ISA which is boosted by the government by 25%. You can receive up to £3000 in total after saving £1200 of your own money. The scheme does not allow you to put money back in that you have taken out which is aimed to help you keep control of your finances and ensure you aren’t burning your savings when you feel tempted.
Help to Buy homes
If you’re looking to pay a small deposit and a more manageable mortgage while still being able to own your home straight away then help to buy homes may be your answer. Allowing you to pay just 5% deposit and providing you with a 20% equity loan you can get your hands on your ideal home in the perfect location. The loan provided by the government has no interest for the first 5 years and can help you ease into home ownership without the pressure of initial costs. These homes also range from bigger family homes to smaller city apartments and open up competitive sought after areas that you may have not considered.
Whether you’re looking for shared ownership in Newcastle or properties for sale in East London, you can find your perfect home at a price you can afford and leave renting behind. Your home is your biggest investment so don’t waste time, you can get a footing on the property ladder no matter your financial circumstance.