How to Get on the Property Ladder

Buying your first home is an exciting milestone, but it can also be a daunting process. Fortunately, there are several schemes and resources available in the UK to help first-time buyers navigate the property market. In this blog post, we’ll explore the key support options available to you.

1. First Homes Scheme

The First Homes scheme is designed to help first-time buyers purchase a home at a discount of 30% to 50% off the market value. This scheme is available for new homes built by developers or homes previously bought through the scheme. To be eligible, you must be a first-time buyer, over 18, and able to secure a mortgage for at least half the price of the home. Additionally, your annual income should not exceed £80,000 (or £90,000 in London).

2. Lifetime ISA (LISA)

A Lifetime ISA is a great way to save for your first home. You can save up to £4,000 each year, and the government will add a 25% bonus to your savings, up to a maximum of £1,000 per year. This account is available to individuals aged 18 to 39, and the savings can be used to buy a property costing up to £450,000.

3. Help to Buy: Mortgage Guarantee Scheme

The Help to Buy: Mortgage Guarantee Scheme helps first-time buyers with a small deposit of just 5%. The government provides a guarantee to lenders, encouraging them to offer high loan-to-value mortgages. This scheme is available until June 2025 and can be a valuable option for those struggling to save a large deposit.

4. Shared Ownership

Shared Ownership allows you to buy a share of a property (between 25% and 75%) and pay rent on the remaining share. Over time, you can buy additional shares in the property, known as “staircasing,” until you own the property outright. This scheme is available across the UK and can make homeownership more accessible.

5. Right to Buy and Right to Acquire

If you are a council or housing association tenant, you may be eligible for the Right to Buy or Right to Acquire schemes. These schemes allow you to purchase your home at a discount, making it easier to transition from renting to owning.

Conclusion

Navigating the property market as a first-time buyer can be challenging, but with the right support and resources, it is entirely achievable. Whether you take advantage of the First Homes scheme, open a Lifetime ISA, or explore Shared Ownership, there are numerous options to help you get on the property ladder. At Gold Key Mortgages, we’re here to guide you every step of the way. Contact us today to learn more about how we can assist you in making your homeownership dreams a reality.