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Expert advice on affordability schemes
Expert knowledge on schemes to help make mortgages affordable
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We take care of the complicated paperwork
And liaise between the lenders, solicitors and Estate Agents.
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Impartial
We are not tied to one particular lender or bank
Help to Buy scheme
The Government’s Help to Buy Equity Loan scheme officially closed to new applicants on 31st October 2022. As a result, you might be wondering what options are available to help with mortgage affordability now that the Help to Buy scheme has closed.
Here we look at the various options available to help with mortgage affordability for both first time buyers and for current or previous home owners. If you have any questions, please get in touch and our team of experienced advisers will be happy to help.
What help is available now the Help to Buy scheme has ended?
It does not currently appear that the Government is going to replace the Help to Buy scheme with something similar. However, there are a number of other options available to help with the purchase of your home. We go through these below:
Shared Ownership Scheme
The Shared Ownership scheme is a Government backed option to help with affordability. You can find out more about it on our page dedicated to the Shared Ownership Scheme.
It offers you the chance to buy a share of between 25% and 75% of your home’s value and then pay rent on the remaining share. For this reason, it is often referred to as ‘part-rent, part buy’. It is an option now that the Help to Buy Scheme has ended.
Shared Ownership schemes might be a good option for people who have struggled to raise a large enough mortgage based on their savings and income alone. It also provides long-term security, which may be better than simply renting a property.
Typically, you would raise a mortgage on your share of the purchase price of the property. And pay a deposit of 5% on this amount, rather than the full purchase price. Again, this can make it easier for those people on lower incomes or who are struggling to save a deposit.
We also have a page dedicated to the Shared Ownership scheme on our website if you want to find out more.
95% Mortgages
There are still some 95% mortgage available on the market, although these have inevitably dwindled in number. These enable you to purchase a property with just 5% deposit and are sometimes known as 95% loan to value mortgages.
They can be useful for First Time Buyers or previous home owners who have struggled to save up enough of a deposit.
The downside of 95% mortgages is that they are typically more expensive as, having a larger deposit can unlock better interest rates. Having said that, they can be a useful way to get your foot on the property ladder. Enabling you to build up equity in your home, which hopefully means you get a better deal when you come to remortgaging.
We can advise on 95% mortgages and to discuss whether these might be an option for you.
Stamp Duty Cut
In 2022, the Chancellor announced a significant change to the Stamp Duty rates. The aim of this cut was to get the housing market moving and support first-time buyers to put down roots.
As a result of this change, there is no Stamp Duty Land Tax to pay on residential properties purchased in the UK with a value of less than £250,000. The amount you pay in Stamp Duty then goes up in increments according to the purchase price.
On top of this, for First Time Buyers, there is no Stamp Duty to pay on residential properties with a purchase price of up to £425,000.
To find out how much you will pay on Stamp Duty Land Tax for your purchase, see the Government’s SDLT Calculator. Or contact us and we will go through all the options for you.
Forces Help to Buy Scheme
If you are a member of the armed forces, there is a dedicated Forces Help to Buy scheme. You can find out more about this scheme on our page dedicated to Forces Help to Buy.
The scheme is designed to help serving members of the armed forces get on the property ladder. Originally, the scheme was going to come to an end on 31st December 2022. However, the Government has now decided it should be an “enduring policy, ensuring its availability to all service personnel now and in the future.”
The Forces Help to Buy scheme allows Regular Serving Personnel to borrow an amount, interest fee to be used to help purchase a property. The loan amount can be up to 50% of their annual salary to a maximum of £25,000, interest free. The loan can also be used towards a deposit and other costs such as solicitor and estate agents’ fees and can be repaid over a period of up to 10 years.
To find out more about the scheme and how we can help, visit our dedicated page for the Forces Help to Buy Scheme, or get in touch.
Joint Borrower, Sole Proprietor (JBSP) Mortgage
A JBSP mortgage is a specialist type of lending to help people get on the property ladder. It enables home buyers to purchase a home with the assistance of a family member. Crucially, while both you and your family member remain responsible for repaying the mortgage loan, you will remain the sole proprietor of the property.
We have a dedicated page about the JBSP Mortgage Advice we offer.
You can find out more about this type of mortgage using the link below.
Things to think about
There are a number of things you need to think about before you take steps to take out a mortgage for the first time. At Your Mortgage Expert, we will talk you through all of these and ensure you are clear on all the risks and benefits before you proceed. Some of the things you should consider are:
- What type of mortgage is most suitable for you?
- Can you afford the mortgage payments on top of your current liabilities?
- What level of risk is appropriate for you?
Your home could be at risk if you don’t keep up your mortgage payments. Our professional, experienced mortgage advisers will ensure you understand if a first time buyer mortgage is appropriate for you before proceeding. You may also find out article “Top 5 schemes to use now Help to Buy has ended” article useful.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
Our handy mortgage calculator
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