Help to Buy - Home Ownership Schemes
Housetrade works with a panel of Independent Financial Advisers (IFAs), who have been trained to offer impartial advice on all government backed schemes, providing you with expert advice on mortgages available to you. If you are a new customer please contact firstname.lastname@example.org or call 01614313819. Alternatively you may contact us via post at Housetrade, Advantage Business Centre, 132-134 Great Ancoats Street, Manchester, M4 6DE.
The most polular government backed schemes at the moment for home ownership are:
Help to Buy
FirstBuy is an equity loan product which gives you the opportunity to buy a new home with the help of up to 20% of the full purchase price. The FirstBuy equity loan will be interest free for the first five years with a charge payable from year six. FirstBuy is available from April 2013 at developments across Englandf from a range of developers building homes.
Direct With HelptoBuy NewBuy, you can buy a newly built home on a designated selected development with the help of an equity loan. Your mortgage, savings and any deposit required must fund a minimum of 70% of the total purchase price; the remainder will be paid for with an equity loan of up to 30% of the total purchase price. HelptoBuy Direct is a past product, but there are still a handful of HelptoBuy Direct developments which will be made available in London this year.
Shared Ownership is a part-buy, part-rent scheme for people who cannot afford to buy a home with a commercially-available mortgage. It is backed by the government, and is a way to buy a share in a home now with the option to buy more of it in the future.
You will need a minimum level of income/savings depending on the value of the home you want to buy. Shared Ownership, you buy a share in a new or existing shared ownership home, starting at 25% of the full market value of the home, and pay a rent, which is initially capped at a maximum of 3%, on the part owned by the developer. If you buy a shared ownership apartment, you will also have to pay a service charge to the developer to cover the cost of maintenance to communal areas and the grounds of your building. You will need to have savings to cover any deposit required by your mortgage lender and the costs involved in moving into a shared ownership property.
Shared Ownership is designed so that you can buy a new or existing shared ownership (where a current shared owner is selling their property) home with a lower deposit and with monthly housing costs that are approximately 20% lower than if you were to buy the same home outright on the open market.
Independent Financial Advisors
Panel of IFA (Independent Financial Advisors) This means with just one application form you can apply for a whole host of government schemes to assist you getting on the property ladder. These include Shared Ownership, FirstBuy (equity loan scheme) and Rent To Buy – the ever popular discounted rent initiative which allows you to “try before you buy”.
Housetrade works with a panel of Independent Financial Advisers (IFAs), who have been trained to offer impartial advice on all government backed schemes, providing you with expert advice on mortgages available to you. We have seperate Panels dependant on your region, as well as foreign language support where available.
The Money Advice Service - make the most of your money:
Whatever the situation with your finances, it’s good to know you’re on top of things and are making the most of what you have. The Money Advice Service is here to help. It offers clear and unbiased money advice and information to help you make the most of your money, whatever your circumstances – and it’s free.
About the Money Advice Service
The Money Advice Service is independent and unbiased so it won’t recommend any particular products or try to sell you anything. It was set up by government and is funded by a levy on the financial services industry. You can access their services online – www.moneyadviceservice.org.uk
The HCA believes everyone proposing to buy their own home and obtain a mortgage should be aware of what they are taking on, and what they can afford. You should also have continued support after purchasing and the Money Advice service can offer that support by providing you with the tools to assess your financial health on an on going basis, work out priority payments such as your mortgage, and obtain help and support if your circumstances change and you need some extra advice. The tools available on Money Made clear can also help purchasers if you are thinking of staircasing or paying back you second charge or just want to reassess your situation.