It is critical to recognise that there are still options available for first-time buyers despite the fact that the closure of Help to Buy and economic uncertainties have made the process of purchasing a home much more difficult.
Help to Buy is now closed
Money worries are significant for those looking to buy their first property. For many years, first-time buyers across the UK depended on government programmes like Help to Buy and it could feel much more difficult to purchase your first house without such a scheme, so what are the alternatives?
First-time buyer schemes
Although Help to Buy is now closed to new applicants, there are still options out there that can help in the successful purchase of your first home.
The First Homes Scheme
The First Homes Scheme provides new build homes at a 30% discount on market prices for local first-time buyers and key workers. It is exclusively offered in England, and eligible properties must either be new builds or residences that were previously purchased through the programme.
The Mortgage Guarantee Scheme
The Mortgage Guarantee Scheme, which was introduced in April 2021, is aimed at helping first-time buyers purchase properties with just a 5% deposit.
Under this programme, the government provides your lender with a financial guarantee, enabling them to provide you with a 95% mortgage on a home valued up to £600,000 while still subject to the usual affordability assessments.
The programme was initially scheduled to cease at the end of 2022, but since it has already aided more than 24,000 households, the closing date has been extended to December 2023.
Shared Ownership
It's safe to say that purchasing your first home is not easy given the average cost of a home in the UK.
By allowing first-time buyers to purchase a share of a property (often between 25 and 75 per cent) and pay rent on the remainder, the Shared Ownership Plan tries to make this process a little easier.
You can gradually buy more shares in the property until you fully own it.
