Alternative ways to buy your first home
If 2022 is going to be your year for buying a home then you could do with knowing all the options available to you. With plenty of ways to buy a home, putting down a deposit and getting a mortgage isn’t the only way to get your footing on the property ladder these days. With a multitude of schemes out there to help get you into the property at a pace and price that suits you, buying your home has never been more flexible.
Help to Buy
One way to buy your first property is through Help to Buy. This government scheme has been around for a while but has seen rising popularity in recent years. Help to buy let’s you put down a 5% deposit cutting down those first upfront payments. You will also receive a 20% equity loan that carries 0% interest for the first 5 years. This means you will only have to get a mortgage for 75% of the property’s value making it easier to secure your dream home and keep up with the monthly payments. Help to Buy is also great if you want to buy a home in London. With help to buy in London you still put down a 5% deposit but in accordance with the higher house price of London you will receive a 40% equity loan with 0% interest. This can save you a lot of stress when it comes to getting a mortgage and with just 55% of the entire value of the home to mortgage, you can keep up with monthly payments.
Another way you can get yourself on the property ladder is through shared ownership. This scheme allows you to buy a share in a property rather than the entire thing all at once. Shared ownership allows you to buy between 10% and 75% of a property and rent the remaining portion from a housing association. This scheme is available on a range of homes from shared ownership homes in Lewisham to shared ownership apartments in West London. Shared ownership is a great way to buy a home if you’re on your own and you don’t want to have to share your home in order to buy it. From bigger family shared ownership homes in Medway to smaller apartments in central London, shared ownership offers a lot of flexibility. You can also buy more of your home overtime and increase the amount of shares that you have. This means you can climb the property ladder without technically moving anywhere at all. You can also spread the cost of stamp duty and you only have to put down a 5-10% deposit on the share you want to own, making those upfront costs a step rather than a hurdle. Shared ownership is widely available and becoming increasingly popular in places like London and definitely an option to consider if you’re looking to buy your first home in 2022
What’s best for you
Both shared ownership and help to buy make getting your hands on your first property a lot easier but it’s important to consider what will better suit your circumstances. If you want to own your house from the very start then help to buy is the best option, but if you want to make that deposit even smaller and ease into a mortgage then shared ownership is great. With plenty of portals offering both shared ownership and help to buy you can find exactly what you’re looking for. If you’re a little lost then connectwithhome.co.uk is a great place to start. However you decide to buy your first home make sure you know all the options and how they could help you on your home buying journey.
Provided by USA Home Listings, help companies with moving leads