Affordable Home Ownership Schemes
Whether you’re a first time buyer or existing home owner, we’re here to help you every step of the way. There are several government backed affordable home schemes to support buyers making the step on to the property ladder. Depending on your income and deposit value the Help to Buy: Equity Loan or Shared Ownership could make it easier for you to buy your dream home. Affordable home ownership schemes bring the benefit of low deposit and varying percentages of ownership. All affordable homes are built to the usual Fellside quality and specification and you remain in control of your house at all times – you can decorate, make alterations and have pets!
Help to Buy: Equity Loan
With a Help to Buy: Equity Loan the government lends you up to 20% of the cost of your newly built home.
The Help to Buy: Equity Loan the Government lends you up to 20% of the cost of your newly built home, so you will only need a 5% cash deposit and a 75% mortgage to make up the rest. You will not be charged loan fees on the 20% loan for the first five years of owning your home.
Conditions of the scheme from 1st April 2021 to 31st March 2023
The conditions of new scheme are:
- First time homebuyers who meet affordability and lending terms
- The maximum purchase price in the North West region is £224,400
- The property purchased must be your only residence
More information: https://www.helptobuy.gov.uk/equity-loan/equity-loans/
Example: for a home with a £200,000 price
How to apply for a Help to Buy: Equity Loan
Everyone who wishes to purchase a property through the Help to Buy Equity Loan scheme will be required to complete a Property Information Form (PIF). The PIF provides the Help to Buy agent with all the information relating to the property you wish to purchase through the Help to Buy Equity Loan scheme. The PIF is available from your local Help to Buy Agent which for the North region is Help to Buy Agent 1, the online form can be found here and should be completed by the buyer or those acting on behalf of the buyer https://www.helptobuyagent1.org.uk/apply/
Shared Ownership
With shared ownership you buy a share of your house and rent a share of your house from a housing provider.
It is a scheme that is designed to make it easier for you to get on the property ladder and means those who previously couldn’t afford to buy, may now be able to. You just buy a share of your Fellside home that’s right for you and our partner company will own the other share. You’ll pay them a low monthly rent for the part you don’t own. As time goes on, you can choose to increase your share in your home – up to 100% ownership.
Conditions of the scheme
The conditions of new scheme are:
- Household income does not exceed £80,000 per annum
- You have a deposit (atleast 5% of the share value)
- You are registered and approved by local Help to Buy agent
- Are a first time buyer or used to own a home but cannot afford to buy 100% of a property now
- Property will be your principle home
More information: Affordable home ownership schemes: Buying through shared ownership – GOV.UK (www.gov.uk)
Example: for a home with a £200,000 price
How to apply for a shared ownership
Everyone who wishes to purchase a property through the Shared Ownership scheme will need to register with Help to Buy Agent. More information and the application form can be found here > Applying for Help to Buy: Shared Ownership (helptobuyagent1.org.uk)
