First Time Buyer Mortgage Help Schemes.

Are you a would-be homeowner? If you’re not sure how you’re going to afford the deposit and mortgage repayments, there are a few government-backed schemes in the UK that can make buying your first house more affordable.

Low Deposit Mortgages

Some lenders offer 91-95% loan-to-value mortgages, meaning you would pay just 5% - 9% of the property's value as a deposit. Smaller deposits can make home ownership more accessible, but these types of mortgages usually come with a higher interest rate and a potential risk of negative equity (so the value of your home may end up being less than your mortgage). Have a chat with one of our advisors to find out more about low deposit mortgages and whether this might be a good choice for you.

Shared Ownership

This is where you buy a share of the property (between 10% and 75%) and pay the remainder as rent. You will pay your deposit based on the price of the share, not the total value of the home. You can pay for the share upfront or take out a mortgage. To be eligible for shared ownership, you must:

• Earn less than £80,000 (£90,000 in London).
• ‘Shared Ownership is designed for buyers who would struggle to purchase a suitable home on the open market.
• This will be your only home (i.e., you are a first-time buyer or need to move house).

Pros and cons of Shared Ownership

• You have the option of buying more shares over time (which is known as staircasing), so you can reduce your rent payments over time.
• Some of these properties come with a 990 year lease.
• Some schemes offer limited repair support in the early years, depending on the housing provider.
• On the downside, selling a shared ownership property can be a bit more complicated.
• You may be restricted from making significant decorative changes or home improvements.

First Homes

Designed to help first-time buyers in England get on the property ladder, the First Homes Scheme offers discounted new-build homes, and occasionally resales originally purchased through the scheme. If you are eligible for First Homes:

• You are over 18.
• You are a first-time buyer.
• You can afford the smaller mortgage repayments.
• Your joint income is less than £80,000 (£90,000 in London).
• Some councils may prioritise key workers, locals, or people on a lower income.
• The First Homes scheme is only applicable to certain developments.
• The discount usually carries over into the resale, so if you sell your home, you will probably have to sell it at a discount.

Mortgage schemes and eligibility criteria change with time, so make sure you don’t miss out on any new information. Get in touch with Winwell Financial to explore which schemes you may qualify for and what’s achievable with your budget.