Home Buying Schemes for 2023
Saving for your home can be a challenging process, which is why the UK government has introduced several options to assist people, such as first-time buyer schemes, support for low income families, and those with disabilities, with their finances in regard to making a home purchase. These programmes assist people with securing a place on the property ladder. There are many different schemes available, some that support buyers with deposits, sharing ownership, and even help to build new homes.
Mortgage Guarantee Scheme 2023
What is the Mortgage Guarantee Scheme?
This scheme has been in place since 2021 and was set to wrap up at the end of 2022, however, the government has decided to extend it until the end of 2023. This is very exciting as this scheme allows buyers to put down as little as 5% In their deposit on homes up to £600,000 in value.
The Mortgage Guarantee is UK wide, meaning you can use it in England, Scotland, Wales, and Northern Ireland. It is available to first time buyers and existing homeowners who are looking to move houses. To qualify you must be purchasing a property that will be your only home. This can not be a second home or buy to let property.
How to Apply
There is no application process, you simply must find a mortgage offer that is suitable for your needs. Our brokers are extremely knowledgeable, have access to many lenders, and explore the mortgages offers available to you. They then offer free advice, and handle all of the paperwork for you when progressing with a mortgage.
Help to Build Equity Loan
What is the Help To Build Scheme?
This loan is here to help people who are looking to build a new home or hire someone to build a home for them. This scheme is currently available in England, Wales, and Scotland.
England: You can use the loan to help you buy land to build your new home, build an airspace development, convert a commercial space into a residential space, build a shell home, or demolish an existing property to replace it with a new home.
Wales: In Wales, you must select a plot that has planning permission, apply, and then work with the government to find a builder and confirm your plans. Finally, the funding is awarded.
Scotland: This scheme offers loans of up to £175,000 to help with construction funding for self-build projects. You will need planning permissions and a building warrant to be successful.
Each scheme will have different restrictions depending on where you apply, this is just a top-level view, there will be more criteria you will have to meet. Our advisors will be able to assist you with every step in the process and any questions you may have.
England: You can apply if you are going to live in this property as your only home.
Wales: This scheme is open to everyone in Wales.
Scotland: Help to Build is open to those who cannot access standard bank lending to cover construction costs.
How to Apply
Right to Buy 2023
What is the Right To Buy Scheme?
The Right to Buy scheme assists council and housing association tenants with buying their property. The government will assist tenants with up to £127,940 (£96,010 outside London).
This scheme is only currently available in England. It is open to tenants of council properties who use the space as their only, or main home. You must have been living in their homes for at least three years, however, it does not need to be 3 consecutive years.
To be eligible for the Right to Buy scheme, tenants must be able to obtain a mortgage to purchase the property. The mortgages available will depend on the deposit size, property value, and affordability criteria, just as any other application would.
How to Apply
First, you must fill in the RTB1 notice and send it to your landlord. Your landlord then has 4 weeks to respond, and 8 weeks if you have lived there for less than 3 years. If your landlord denies your request, there must be a valid reason and they need to let you know why.
If they agree, they will provide you with an offer. You will have 12 weeks to respond and the right to pull out at any time.
First Home Scheme
What is the First Home Scheme?
This scheme is here to help people get on the property ladder, and in some cases, participants may be able buy a home for 30% to 50% less than its market value. There are a few restrictions on the properties that qualify, the first being that it must be a new build, or a home someone purchased through the scheme and is now selling their property. Please note that this programme is due to conclude in September 2023, so act fast!
This scheme is only available in England at the moment and is available to all people over the age of 18. Participants must be able to get a mortgage that can pay for a minimum of half of the home’s value and have an income of £80,000 or less (or £90,000 if you live in London).
How to Apply
The process is simple. You’ll begin by getting in touch with the developer (or estate agent if you’re buying from a previous First Homes buyer). Once you tell them that you would like to purchase as part of this scheme, they will help you with the application. There is a fee if the First Home you want to buy is a new build which varies from developer to developer. You will get the fee back if your application is unsuccessful.
Shared Ownership in 2023
Across the UK, there are shared ownership schemes helping you purchase part of your property. Each will operate differently, but have the same goal in mind, getting you on the property ladder.
What is the Shared Ownership Scheme?
Northern Ireland: In Northern Ireland, the shared ownership scheme is called Co-Ownership. It is available to those who previously owned a home but can no longer afford to buy one and currently own no property.
Scotland: In Scotland, the scheme is called Shared Ownership and it allows you to purchase 25%, 50% or 75% of a home, with the housing association owning the rest. The priority is given to first-time buyers and priority groups, such as low-income families, disabled people, and veterans.
In Scotland, there is also a New Supply Shared Equity scheme which is open to first time buyers and priority groups. There are a few differences, but the main one is that this is strictly for new builds.
Wales: In Wales, the shared ownership scheme is called Shared Ownership. Under the scheme, you can purchase between 25% and 75% of a property’s value, with a housing association owning the remaining share. You can increase your share at any time.
England: The Shared Ownership scheme in England allows buyers to purchase 10% and 75% of the home’s full value which includes new-build properties, existing homes through a shared ownership resale scheme, and homes that fit the needs for those with long term disabilities.
Each scheme is different and comes with different criteria. Below, we will look at the top-level requirements, however, please contact a First Mortgage broker to find out more.
Northern Ireland: Joint and single applicants can apply if they have the right to live in Northern Ireland. To be eligible, you cannot currently own a home or have any outstanding property debt on a previous purchase. Any debt must be managed, and you will be required to pass a credit assessment.
Scotland: This scheme is open to first time buyers with limited housing alternatives, widows, low-income families, and more. You must choose a property that is listed by the participating social landlord in your area. Please keep in mind that there may be a waiting list.
Wales: You must purchase an eligible home from a participating landlord. Applicants must have a combined household income of less than £60,000 annually, be a first-time buyer, or be forming a new household. Other exceptions include relocating for work.
England: You must be a first-time buyer, a previous home owner who can no longer afford a home, an existing shared owner looking to move, or a home owner that wants to move to find a house that suits your needs. You must also have a household income of £80,000 a year or less (£90,000 a year or less in London) and not be able to afford all of the deposit and mortgage payments for a home that meets your needs.
How to Apply
To apply for all home ownership schemes available across the UK, please visit the shared ownership section of the gov.uk website. If you are interested in learning more about each or discussing the options available for you through a mortgage, please contact one of our advisors.
Home Ownership for People with Long-Term Disabilities (HOLD)
What is the HOLD Scheme?
This government scheme is here to help those with long term disabilities purchase a percentage of a property in which they will be living in as their home. HOLD operates on the same basis as Shared Ownership (which you can read more about above). Eligible buyers can purchase between 10% and 75% of the market value of the home and pay rent on the rest. You can buy more of the property in the future, as and when you can afford to do so.
Currently, this scheme is only available in England. Your total household income cannot exceed £80,000. This is revised to £90,000 or less in London. HOLD is only open to first time home buyers, those who used to own a home but can no longer afford it, and shared property owners looking to find a more suitable option.
How to Apply
If you would like to learn more about the scheme, please get in touch with an advisor. If you are ready to apply for the HOLD scheme, please click the link provided.
Buying A Home In 2023
2023 is a good time for those looking to move homes and there are many schemes available to assist you with doing just that. The government is assisting many families across the UK with the financial side, and our advisors are here to help you with finding the right mortgage deal, handling the paperwork, and providing impartial advice.
Looking to learn more? Here are 5 facts and predictions for UK mortgages in 2023.