Certus Mortgages »
Mortgage Guide
With a little help…
If you don't want to live with friends or family, there are a range of ways the Government can help your property dreams become a reality.
Key workers
If you have a `key' occupation, such as nurse, teacher, social worker, police officer, firefighter or prison and probation officer, and you live in London, the south of England or east of England, the Key Worker Living Scheme, funded by the Housing Corporation, allows you to borrow up to £50,000, interest-free. You can then add this to the loan amount when you buy either a property of your own choice or a newly-built home from a housing association.
How it works: when you sell your home, the Housing Corporation gets its money back, plus a proportional share of any increase in the value of the property. However, if you leave your job and are no longer eligible for the Scheme, you will usually have to pay the Housing Corporation's money back within two years.
Need to know: the Scheme is aimed at first-time buyers, but if you need help to buy a larger property, you may be eligible. London teachers, who are considered `leaders' of the city's education system, can apply for up to £100,000. Similar schemes are being rolled out throughout the UK.
Shared Ownership
If you can't afford to buy your own home, Shared Ownership schemes allow up to four people to buy a property jointly, with a housing association contributing between 25 and 75 per cent of the purchase price. You can either buy a house that has been built or bought by the housing association, or find a property on the open market and ask the housing association to help you buy it. You will need to pay rent to the housing association and a small mortgage, which is usually cheaper than paying a large mortgage on its own.
How it works: if your share costs less than £120,000, you won't have to pay stamp duty. Each year, you are able to increase your stake in the property, usually in 25 per cent chunks, and, as long as your new share is under £120,000, you won't have to pay stamp duty. When you sell up, the profit will be divided between the owners and the housing association, according to what share you each own.
Need to know: each housing association varies, but all owners must individually and jointly meet the eligibility criteria.
▪ Buying Property ▪ Capital Raising and Property Ownership ▪ Mortgages ▪ Our Services ▪ Selling Property
The opinions expressed are those of the author and are not necessarily held by Certus Mortgage Solutions unless specifically stated. The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions.
You can obtain independent, professional advice for your own particular situation by contacting Certus Mortgage Solutions at the number below.
|
|
|
