Now is the time for First Time Buyers

‘Generation Rent’ is a term you may well be familiar with by now. With the average first time buyer now being in their early thirties, it certainly seems that more and more people are struggling to get onto the property ladder, and instead are living with their family or renting for longer.

Staying at home with Mum & Dad or renting your own place can be really useful if you’re unsure what the future holds and need a bit of flexibility – maybe your career will take you to a different part of the country, so relocation is on the cards… or maybe you’re considering flying off on a once in a lifetime adventure around the world.

But if you’re ready to lay down your roots, build your nest and invest in your future, now is the perfect time to do just that and here’s why…

You May Not Need to Pay Stamp Duty Land Tax…

As of November 2017, First Time Buyers no longer need to pay Stamp Duty Land Tax on the first £300,000 of the property’s worth, as long as the value of the property is no more than £500,000.

According to the Money Advice Service, this will mean as a First Time Buyer you could save up to £5,000. Just think, what could you do with that extra £5,000?! Perhaps extra money to put towards the deposit… maybe the bathroom or kitchen at the new place needs updating? Or maybe even a celebratory holiday somewhere exotic!

There are Government Schemes that could help…

You may have heard of these initiatives introduced by the Government to help first time buyers get onto the property ladder. If you haven’t, don’t worry – let us give you the low-down…

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Help to Buy Equity Loan

This scheme has helped over 450,000 first time buyers get on to the property ladder even sooner and is available on participating new builds across the country.

All you need to have is a 5% deposit and the Government will give you an equity loan of up to 20% of the purchase price. The loan will only be repayable when you come to sell the property or after 25 years (whichever comes first). This means all you need to do is get a mortgage of up to 75% of the property value, and that’s exactly where we can help you.

It’s worth knowing as well, if you’re purchasing a property in London, the maximum Equity Loan available to you is even higher, meaning you could get 40% of the property value from the Government. You’ll still need a 5% deposit, but the mortgage will only need to be 55% of the property price.

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Help to Buy ISA

This is a completely separate initiative and is available on all properties up to £250,000 in value outside of London, and £450,000 inside of London. This is a type of savings account which you can open with a maximum deposit of £1,000 and then can add up to £200 per month.

When you come to purchase a property, the Government will pay you a 25% bonus on what you have saved up. The maximum bonus you can claim is £3,000 which means you will have £12,000 or more saved up in your ISA. The bonus will be available on completion and could make the difference in securing your dream home. Don’t panic though – your savings will not be tied up, so if you needed to withdraw anything along the way, perhaps for urgent car repairs, you will be able to at no charge.

We understand there’s a lot to think about when you’re buying your first place, and we’re here to help answer all your questions. Whether you’ve just embarked on your career, taken the leap to start your own business or whether you’re a veteran in your field, we’re here to help so please do not hesitate to give us a call and we can work together to help you buy your dream home.