If a buyer uses this scheme, when they come to sell, or after 25 years, the government required the loan to be paid back. There is also a London version that offers equity loans of up to 40 per cent of the purchase price. This scheme is due to close in 2021.
First-time buyers in Scotland can access a Help to Buy scheme offering a loan of up to 15 per cent plus their own 5 per cent deposit on a new-build.
There is also a New Supply Shared Equity scheme where the Scottish Government can fund up to 40 per cent of the purchase of a new-build that is repaid when the firs-time buyer sells.
Wales offers a HomeBuy scheme providing an equity loan of between 30 per cent to 50 per cent of the purchase price. It is designed for people who would otherwise need social housing and can be repaid once the property sells.
Northern Ireland offers an Equity Sharing where you can buy a property, often at a discount, with a housing association or the Northern Ireland Housing Executive.
Right to Buy
Local council tenants in England have a right to buy their rented home from the local authority at a discount if they have been renting from the public sector for three years using Right to Buy.
Right to Buy is for tenants in England, who rent their home from their local council or housing association. It allows tenants who qualify to buy their home at a discount of up to £77,900 outside London and £103,900 in the capital.
The size of the discount varies depending on where the buyer lives and the type of property. This doesn’t have to be consecutive, so if a client has been in and out of private and public sector renting for more than three years they could be eligible.
Shared ownership
If self-employed clients cannot afford a full mortgage, they could consider shared ownership. This offers the chance to buy a share of between 25 and 75 per cent of a home, typically a new-build, and pay rent on the remaining share.
They will either need their own savings or a shared ownership mortgage from a bank or building society to buy their share. The rent on the rest of the property won’t be more than 3 per cent of the remaining stake.
Buyers can buy bigger shares as and when they can afford to. However, eligibility criteria varies in England, Scotland and Wales. For example, in England, a household must earn £80,000 a year or less or £90,000 a year or less in London.
Starter Homes
