As the government is always aiming to generate more first time buyers, they’ve developed a number of schemes to help both buyers and lenders to create more homeowners in the UK. Government mortgage schemes allow borrowers an easier route to getting on to the UK housing ladder by offering affordable rates with very low deposits. Government schemes also support lenders allowing them to accept mortgages with lower deposits than usual.
Should I use government mortgage schemes?
There are different Help to Buy schemes such as the original scheme which allows the government to lend money to the borrower. There’s also the Key Worker scheme which was developed in order to help service workers in both purchasing their first property and moving home.
Not every first-time buyer will need to use a government mortgage scheme to purchase their first property. This is because each mortgage scheme and mortgage product will have some advantages and disadvantages. The key is to find which mortgage is suitable for you based on your individual circumstances.
Government mortgage schemes in 2018 are being increasingly encouraged. One of the main reasons for the recent ban on letting agent fees was so that the private rental market would be able to save more money when moving house. The government is encouraging tenants to save more money with the aim of generating more homeowners. The coming years will perhaps see an increase in government mortgage schemes entering the market.
For information on current government mortgage schemes, please click the links below.
The right to buy scheme allows tenants to purchase the council property they’re living in.
This is a great way to save money for your first home. First-time buyers can benefit from saving money into the scheme and then receiving a 25% savings boost from the government.
This scheme allows first-time buyers to purchase a share of a property if they can’t quite afford to purchase 100%.
For new build properties with just a 5% deposit. The government lends you up to 20% of the cost of your newly built home. The remaining 75% is mortgaged to make up the balance.