Help to Buy Shared Ownership
Current restrictions on who can buy a home through shared ownership will be removed from April 2016. Shared ownership allows people to buy a share of a home – rather than the whole house – and then buy a greater share over time as they can afford to. They pay rent on the rest of the property. Currently, these are allocated in several different ways including criteria set by local councils, for example whether potential buyers work in the local area or if they are already in council housing.
Help to Buy Shared Ownership will lift the limits so that anyone who has a household income of less than £80,000 outside London, and £90,000 inside London, can buy a home through shared ownership. Only military personnel will be given priority over other groups. The scheme will apply across England. People can buy a share between 25% and 75% of a home. The rent on the rest of the property won’t be more than 3% of the amount left.
London Help to Buy
If you live in London the government will lend you 40% the price of your home from 2016. Help to Buy Equity Loans are already open to both first-time buyers and home movers on new build homes in England with a purchase price up to £600,000. Currently, if you’re able to pay at least 5% the value of your home as a deposit, the government will lend you up to 20% of the rest of the value of the property, alongside your mortgage of up to 75%. Equity Loan will be now available until 2021. And, to reflect the current property market in London, from early 2016 the government will increase the upper limit for the equity loan it gives new buyers within Greater London from 20% to 40%. More information on how to use London Help to Buy will be available in early 2016 on the Help to Buy website.
First-time buyers will be able to get a 20% discount on 200,000 new Starter Homes
Starter Homes are new build homes available at 20% off the market price. They are only open to first-time buyers under 40. People can register to find out about Starter Homes in their area. £2.3 billion will be spent on building 200,000 Starter Homes over the next five years. This money will be given to house builders to provide a 20% discount on new homes. House builders can now apply to make their developments Starter Homes.
Our Mortgage Specialsts will be able to help you find the right mortgage and the right mortgage lender for you.
