Buying your first home with a smaller deposit

Buying your first home

Often, deposits can be the biggest challenge when it comes to buying your first home.

With 10% now required after the 2008 financial crisis, it can be hard to save for something of good quality in the area that’s right for you.

But with a few simple tips and tricks, you can be moving into the perfect place knowing your finances are taken care of.

So, take your time, do your research and find the ideal home at an ideal price.

Shared ownership

This scheme allows you to part buy, part rent your home while coming with a significantly reduced deposit. With the scheme growing in popularity over the past decade, shared ownership has become a key way of getting onto the property ladder as a first-time buyer at a much more manageable cost.

By Part buying your home you will only have to pay a deposit on the amount you wish to own so for 50% of a £200,000 home, it will cost just £10,000 rather than the usual £20,000.

It also means you benefit from lower rental costs as the remaining part of the home you don’t own belongs to housing associations who provide affordable housing and are non-profit organizations.

With Shared Ownership you can also buy more of your home as you save allowing you to own the property outright when you are ready. This is called staircasing and puts you in the position to move up the property ladder without moving anywhere at all.

From owning just 25% of a home and staircasing to 100% at a rate that suits you, you will later be able to choose your own estate agent and sell your home if you should wish, while keeping all the profits from improvements you may have made.

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These homes are available across the UK from shared ownership in Brighton to London and are mostly all new builds. They also range from smaller city apartments to converted larger detached houses in the suburbs.

Help to Buy

This government scheme is perfect for first-time buyers looking for something of high quality while knowing they get to own the entirety of the property.

These properties require just 5% of the value of the home as a deposit and provide you with a 20% equity loan. This loan has no interest for the first 5 years, giving you plenty of time to pay it back without worrying about extra costs.

The scheme will leave you with a mortgage of just 75% making it a far more affordable way to get onto the property ladder and buy your first home.

With plenty of availability from houses for sale in Kent to Doncaster, you can find something suited to you and your lifestyle. These homes are also mostly new builds, so you won’t have to worry about any renovations or replacements when you move in.

Homes for Londoners

If you’re looking to live in the capital but can’t face the big expenses or the rent that is asked of this city’s property scene, then Home for Londoners may be your answer.

With thousands of shared ownership homes being built In and around the area and help to Buy schemes offering 40% equity loans, Sadiq Khan is making London far more accessible for first-time Buyers.

There are also strategies such as First Dibs that ensure those who work in the area are given priority above overseas buyers when it comes to bidding for properties, meaning houses aren’t bought to rent for extortionate prices which causes house prices to raise in the area.

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They also all remain at the same price meaning no one can outbid each other when it comes to selling the property. This is further helping to lower house prices in the area and make it bringing availability for those on more modest incomes.

In addition to this, London Living Rent is another plan that charges rent costs that are considerably lower than that of private Landlords. It means you can save to eventually buy a home and you will be given priority for shared ownership if you wish to move.

So, while buying your first home may seem like a big challenge when it comes to saving, by simply researching what’s out there you can make your aspirations a reality, much sooner than you thought.

With plenty of choice and schemes that offer different benefits, buying your first home has become a lot easier for those of us who haven’t been saving from birth or happened across a large sum of money on a lucky roll of the dice.

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