Is it your first time buying a house? If so, then you may be able to purchase one for 30% to 50% less than the home’s market value under the First Homes scheme from the government. It doesn’t matter if the home you’re buying is a new home built from a trusted developer or an existing home you’re buying from someone else, as long as the property is in England, you can take advantage of this huge discount. It is one of the best first time home buyer programs in the country so you should take advantage of it if you can.
Sounds interesting? Read on to find out how this First Home scheme works and whether you’re eligible or not for it:
Eligibility
To be eligible for the scheme, you need to be at least 18 years old and a first-time buyer. Your total household income should not be more than £80,000 (or £90,000 if you live in London). You may also be prioritised if you’re an essential worker or someone in your family works in the armed forces. Typically, you’d have to live in the area where you’re buying a house to be approved by the council, too, but that doesn’t apply if you’re an existing member of the armed forces or a veteran who has left the forces in the last five years. This applies to widows and widowers of deceased armed forces members.
There may be other eligibility conditions that you need to meet, too.
Lifetime Individual Savings Account or LISA
You can use LISA to purchase your home if it costs £450,000or less or to save it for later. You can open a LISA if you’re between the ages of 18 and 39. Then you can put up to £4,000 each year in your LISA until you reach 50, but you need to make your first payment before you reach 40. The government will add a 25% bonus to your savings up to £1,000 per year.
You can also buy a house with another first-time buyer and use both your LISAs for the same property. Note that there’s a penalty for taking money out of your LISA before you reach 60 years old if it’s not going towards a deposit.
How the First Homes Scheme Works
There are developers who offer homes with 30% to 50% discounts for first time buyers. They should not cost more than £420,000 in London, or £250,000 anywhere else in the UK, after the application of the discount.
You can also sell the home in the future but only to someone eligible for the First Home scheme, too. Additionally, you need to give them the same percentage discount that you were given. It should be based on the current market value of the home, too.
How to Apply for the First Home Scheme
You can contact the developer or an estate agent to let them know that you are minded to buy a First Home. They’re going to help you complete the application and send it to the local council. There’s a fee if the home you are buying is a new build (you’ll get this back if the application is unsuccessful). The fee depends on what the developer sets.
The local council will then check your application eligibility and contact you with their decision. They’ll also reach out to the developer and your mortgage advisor. You may be asked to submit any missing documents or information.
Conclusion
The First Home scheme is one of the best first time home buyer programs out there that can significantly help you achieve your dream of becoming a homeowner. As long as you are truly eligible for this scheme, there is no reason why you should not be able to enjoy its huge benefits.
When you’re ready for your first time buyer mortgage, A Move Brokers can help you. We are one of the best mortgage brokers in Chester and nearby areas. Contact our team today to know how our mortgage services can help!
This article is for information only and should not be seen as advice or a recommendation to act. As a mortgage is secured against your home or property, it may be repossessed if you do not keep up the mortgage repayments.