Buying your first home is exciting, but also expensive. The Help to Buy scheme can help to make the process a little easier.
I vividly remember walking into my first home for the first time as a new homeowner.
It was a little ground floor flat in the village where I grew up. It had a living room that you walked into straight through the front door, one bedroom, a long galley kitchen, and a teeny tiny bathroom.
I was 20 years old and had inherited a small amount of money, which I used as my deposit. It felt like it took forever for the paperwork to go through, but eventually I got my keys and my friends helped me to move in.
All of sudden, I was a home owner and bill payer, and it felt very grown up. That was a little scary but very exciting as well.
The Rising Cost of Home Ownership
It seems hard to believe it now but when I bought my flat in 1995, it cost just £34,000. These days, I’m sure it would cost a lot more!
And as my sons approach adulthood and independence, I do worry about how they are going to be able to afford their first home.
It’s quite difficult for young people to get on the property ladder now. Most lenders will only lend up to 90% of the property value, and many people struggle to save the deposit they need.
The Help to Buy Scheme
Luckily there is some help available. The government’s Help to Buy scheme provides an ISA to help first time buyers save the deposit they need to get on the property ladder.
You set up the Help to Buy ISA with an opening deposit of up to £1200, and then save up to £200 per month into the ISA. When you are ready to use your savings, the government will boost the value by 25%, up to a maximum of £3000.
There are rules on who is eligible and the type and value of property you can buy. This scheme can be used alongside shared ownership and the Help to Buy Equity Loan scheme.
It can sound a bit confusing, but Manchester-based solicitors Ellison Thomas have produced a handy infographic to help explain the scheme.
An excerpt of the inforgraphic appears below, click on the image to see the full length infographic.
Click on the image below to see the full infographic
If you’re not sure whether the First Time Buyers ISA would be suitable for you, or how to access it, the team at Ellison Thomas can help.
They specialise in residential property law and help first time buyers to move through the home-buying process smoothly.
They can help you with every aspect of the legal side of buying a home, which can get complicated. This will include carrying out property specific searches, title checks and specific enquiries with the seller.
With Ellison Thomas’ help, you’ll know exactly what you’re getting for your money.