Lifetime ISA
You can use a Lifetime ISA (Individual Savings Account) to buy your first home. You can put in up to £4,000 each year, until you’re 50. You must make your first payment into your ISA before you’re 40 and you must be a UK resident.
The government will add a 25% bonus to your savings, up to a maximum of £1,000 per year. You can hold cash or stocks and shares in your Lifetime ISA or have a combination of both.
If you withdraw your money to buy your first home, you will keep your 25% bonus.
The value of investments and income from them can go down. You may not get back the original amount invested.
Shared Ownership
If you can’t quite afford the mortgage on 100% of a home, Shared Ownership offers you the chance to buy a share of your home (usually between 25% and 75% of the home’s value) and pay rent on the remaining share. Later on, you could buy bigger shares when you can afford to.
Help to Buy is available on a limited number of properties and your household income must be below £80,000 to qualify. These schemes can be provided by the Government, or some other organisations/companies.
Deposit Unlock
Deposit Unlock is a new scheme created to get first-time buyers onto the property ladder, and help existing homeowners move with just a 5% deposit. It is available exclusively on new build homes.
First Homes
If you’re a first-time buyer, you may be able to buy a home for 30% to 50% less than its market value. The home can be a new property or a home you buy from someone else who originally bought it as part of the scheme. You must be able to meet certain criteria and Deposit Unlock is only available on certain properties.
Other Offers
There are a variety of other schemes available to assist you in buying a new home. Speak to advisers to find out if you and/or the property you have found qualify for one of these.
hornseamortgagebrokers.com 