Nifty Ways on to the Property Ladder

The following is a 3rd party contribution

With banks more reluctant than ever to lend and housing shortages across the length and breadth of the UK, times have never been harder for first time buyers.  While fingers are still being pointed at who is to blame for this housing crisis, there are in fact ways out there to get on the property ladder even on a modest income. By simply reviewing your options and researching what’s available to you, a whole range of properties and locations become far more feasible from Houses for sale in Dover to Properties in London.

Shared Ownership

This fairly new scheme allows you to part buy and part rent your home while benefiting from a reduced deposit and more manageable mortgage. With Shared ownership you can own up to 75% of the home initially and rent the remaining portion from a housing association. Housing associations are not profit meaning you will receive far less rent costs compared to private landlords.

In addition, you will only have to pay a deposit on the percentage of the home you are buying, therefor for 50% of a house marked at £200,000 a deposit of £10,000 will be required compared to the £20,000 needed without the scheme. These homes span across the whole of the UK from houses for Sale in Lewisham to Liverpool, from quaint countryside dwellings to central city apartments, these new builds ensure you receive top quality for an affordable price in the area that is right for you.

While you can begin by buying just 25% of a house you can choose to increase your ownership when you feel the time is right. This scheme allows first time buyers to take control of their finances and own their own home on a slightly smaller budget.

Help to buy

This government programme enables first time buyers a little help with their finances with a 20% no interest equity loan for the first 5 years. In addition to the government loan you will also only have to pay a 5% deposit leaving your mortgage at just 75% of the value of the house. These homes are widely available in many areas and are becoming increasingly popular for the helpful boost they provide onto the property ladder.

For those looking to live in London Help to Buy schemes extend equity loans to 40%, giving you just a 55% mortgage after a 5% deposit. This programme allows houses that you may have previously thought were out of your price range, available to you at a comfortable price with the reassurance of having time to pay off the loan without being faced with interest expenses.

Homes for Londoners

With London being the hardest hit area of the UK for housing shortage and house price increase, you may think the big city is out of the question, but Sadiq Khan has set out to change that. Homes for Londoners is a scheme that is aiming to create genuinely affordable housing for Londoners and allow people who work in the city an opportunity to move much closer and avoid the commutes.

With programmes such as first dibs already going ahead, Londoners are given priority above overseas buyers and people looking to buy second and third houses in the city. In addition to this 116,000 houses are set to be built in the next few years, with £4.8 billion set aside to make these homes quality places to live while being affordable to the vast majority of Londoners. Shared ownership is also available in the city for those looking to make the best of the programme and cut down their commutes.

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