Many schemes are also available to all and not just first time buyers.
Ash-Ridge Private Finance is one of the few remaining Fee Free firms of mortgage advisers based in central London and the south east and we work closely with several Housing Associations to ensure that applicants for these schemes get the best possible advice and access to a range of affordable homes lenders.
We have guides to all of the schemes mentioned below and can send these to you on request.
Probably the most popular scheme both for new builds and re-sales – You purchase a pre-determined share in a property and pay rent on the remaining share. It is possible to purchase via this scheme with a minimum 5% deposit. We can do the initial eligibility calculations on your behalf for your Housing Association and we will liaise with them on your behalf in order that your purchase goes to plan and ensure that we meet HA guidelines on timescales.
In the 2015 Autumn Statement the Chancellor has advised that he will be relaxing the rules on the scheme to make it more widely available. It has been announced that the maximum household income cap will be increased to £90,000. We will be posting updates on our twitter feed @ashridgepf and on request.
We can also advise on Staircasing if you wish to purchase additional equity in your property.
Help to Buy
This schemes offer the possibility to purchase a brand new home with just a 5% deposit and an additional 20%, 5 year interest free loan from the developer and/or government. As you will only need to borrow the remaining 75% it should give you access to the most competitive rates.
For properties that can be purchased via these scheme you will need to approach individual developers in the first instance.
London Help to Buy
Announced in the Chancellors 2015 autumn statement and launching on the 1st February 2016, this scheme is similar to the existing Help to Buy scheme however the equity loan available will be up to 40%. We have access to all of the lenders signed up to this scheme so far and as our office is based in central London we are ideally placed for advising on this scheme.
Mortgage Guarantee Scheme (Help to Buy2)
This scheme is aimed at the resale homes market and as such is not available for new builds. It is available for both purchase and re-mortgage and allow a purchaser to borrow up to 95% of the property’s value. The lender is protected by an insurance policy in the event of default and so can offer competitive rates at this loan to value.
Right to Buy
This scheme allows certain council tenants to purchase their Council Home at a discount. But with a bigger discount of up to £77,900 (£103,900 in London) now available, this could be the perfect time to decide if it’s the right choice for you. From May 2015, the eligibility criteria has also changed reducing the requirement of 5 years public sector tenancy to 3, making thousands more tenants eligible for Right to Buy.
Voluntary Right to Buy (VRTB)
This new scheme extends the Right to Buy concept to some Housing Association tenants in addition to local council tenants. To date five Housing Associations have signed up to pilot this scheme from early 2016 and the main scheme is expected to roll out in September if the pilot is successful. We will be posting updates via our twitter feed @ash-ridgepf however please do contact us for further information.
Starter Home Initiative
New scheme announced by the Chancellor in his 2015 Autumn Statement.
With average house prices for first time buyers in England standing at around £218,000, a new Starter Home could save young first time buyers across the country an average of £43,000-helping to get them onto the housing ladder.
The plans will allow young first time buyers the opportunity to secure a new Starter Home at a 20% discount to the market price. Home will become available within the next few months.
You can sign up for this scheme now at www.starter-home.co.uk