For those of us out there that are keen to get on the property ladder, the finances involved can often feel somewhat overwhelming.
There’s no doubting that securing a home is a huge financial step, and one that requires a whole lot of saving and planning.
When it comes to securing a first-time buyer mortgage, this can be even more laborious. So anything that makes this process simpler and more straightforward is sure to be welcomed.
But if we were to say there’s a possibility of securing a mortgage on your first property and only having to pay half of what you normally would, you would probably think we were joking. But with a new government scheme, this is a possibility.
What government scheme is this?
The government has launched a scheme named First Homes that sees the cost of houses discounted by 30%, and potentially up to 50% in some instances.
The scheme is one of a number offered by the government to support people seeking to make their way onto, or up, the property ladder.
Who can qualify for the First Homes Scheme?
The First Homes scheme can be taken advantage of by people aiming to get on the property ladder. As long as you are a first-time buyer who earns less than £80,000 a year (£90,000 in London), you are eligible for the scheme.
You will also need at least a 5% deposit of the discounted property price. This means that the amount of money you will actually need to cough up could be substantially lower than anticipated when looking to secure your first home.
The homes will be available in the area in which you currently reside, while key workers will be especially looked after as part of the scheme.
What kind of homes will be available?
This scheme is covering new build houses, meaning those involved will not only be able to buy their first home, but able to take advantage of a new property too.
The first homes in the scheme are now on the market and are located in Bolsover in Derbyshire. More sites are set to be built across England in the coming months.
The government has committed to building 10,000 new homes as part of the scheme, with the potential for more if there is demand.
Many new developments will have homes that are applicable for the scheme. The scheme will apply to the house moving forwards as well, meaning future generations stand to benefit.
What does this mean for me?
It means there’s a potential bargain out there for you. If you are seeking a contractor mortgage or freelancer mortgage at present and are looking to buy your first home, the First Homes scheme is a chance to save literally thousands on the cost of your home.
A suitable mortgage broker can help you take advantage of the scheme if eligible, and give you the best chance of securing a mortgage you are happy with.
More information on the scheme is available here.