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Introduction to Home Buying - Housing Schemes

Prices within the UK's housing market are rising despite national financial uncertainty and many citizens are struggling to find the funds required to purchase a home. As the supply of newly built houses and the demand for housing has increased, UK property developers have set up a number of housing schemes to help people purchase a house without the need of high loans and unaffordable repayment plans. There are currently a number of new developments available to be purchased with the help of a number of mentioned housing schemes below, including newly built family homes in Kent, forthcoming developments in the heart of London and new homes for sale in Surrey. In order to register interest for one of the new homes, Surrey has a number of local Housing agencies who are able to assist those interested purchasing a house through one of the housing schemes available.

Right to Buy

The Right to Buy scheme is specially designed to help council tenants in England to buy their home at a discount. In order to apply for this scheme, applicants must have been a council or public tenant for five years. (It does not have to be five years in a row.) A person is classed as a public sector tenant when they have lived in properties provided by a housing association, the armed services or a public body like the NHS trust. Not all council properties may be available to buy through this scheme, (for example, a property will be excluded from this scheme if it is suitable for the elderly) and those who are interested are advised to contact their local housing authority.


NewBuy

The NewBuy scheme can help people to get a mortgage of up to 95% of their desired house's purchase price. The scheme applies to newly built flats and houses and is currently only available in England. In order to qualify for the scheme, applicants must be able to raise a deposit of at least 5% of their property's purchase price. Once the lenders credit criteria have been met, and the applicant is deemed to qualify under the guidelines, they could be eligible for a loan of up to 95% of the purchase price.

There are currently a number of new build homes in Surrey which are available to purchase through the NewBuy Scheme. Those interested who purchase one of the new homes in Surrey are advised to contact a local Housing Agent to register their interest and assist them through the application process.

HomeBuy

Known in London as 'First Steps', HomeBuy currently has two types of schemes available to help people purchase newly built homes.

    Equity Loan: Applicants will receive a loan towards the home's purchase price which will be fee-free for the first five years.
    Shared Ownership: Applicants will be enabled to purchase a share of the property and pay rent on the remaining share.

In order to profit from the HomeBuy scheme, applicants are still required to take out a mortgage to pay for their share of the home's purchase price.

The HomeBuy scheme is available on a selection of new build homes in Surrey, London, West Sussex, and many more desired locations throughout England. For those interested in buying one of the new homes, Surrey for example has a number of local Housing Agencies who are able to assist applicants through their application.

FirstBuy

The FirstBuy scheme enables applicants to purchase a house with as little as a 5% deposit. With the help from a HomeBuy Agency and a participating house builder, the FirstBuy scheme is aimed to help first time buyers to purchase a newly build property without the attached worry of high mortgages and unaffordable repayment plans. Once the applicant has raised a minimum deposit of 5%, the Homebuy Agency and house builder will provide the applicant with an equity loan of a maximum of 20% of the property's purchase price. It is then up to the buyer to take out a suitable mortgage to cover the remaining 75% of the property's purchase price. The received equity loan will remain fee-free for the first five years, during which all FirstBuy buyers are able to make additional repayments if they wish. The FirstBuy scheme enables the buyers to own 100% of the home which means the buyer can sell the house whenever they want. Please note, when the house is sold, the applicant is required to repay FirstBuy the same percentage as the received loan. Example: If the loan was for 20% of the property's purchase price, FirstBuy will be eligible for 20% of the home's sale price.

There are currently numerous new homes for sale in Surrey, London, Kent, Hampshire, and Sussex which are available to purchase through the FirstBuy scheme. Those who are interested in purchasing one of the new homes in Surrey with the help of the FirstBuy scheme are advised to contact a local Homebuy agent to enquire about local participating house builders.

Armed Forces Ownership Schemes

The Armed Forces Scheme is aimed to provide those who have been working in the armed forces for 4-6 years with financial help towards purchasing a home. To become eligible for the Armed Forces scheme, applicants must have worked in the Armed Forces for 4-6 years at the time of applying. They will have to prove that they have enough money to provide a deposit, legal fees, Stamp Duty and any other moving costs. The applicant must be capable of maintaining mortgage repayments, have a good credit history and must be willing to sell their home if they currently own one.

Article Source: Andrew_Jenks


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