Sarah Beeny Autumn 2017 - 44
▲ BUYING AND SELLING
etting a mortgage from a bank or building society has
been the traditional way to finance a property purchase for
generations. But recent years have seen new entrants to the
market. Whether you're planning to buy your first home or
looking for an investment property, there have never been
more options when it comes to funding a purchase.
With a Help to Buy: Equity Loan, the government lends
you up to 20% (or 40% in London) of the cost of a newly
built home. You'll need a 5% cash deposit and a 75% (or as
low as 55% in London) mortgage to make up the rest of
the purchase price. Better still, you won't be charged any
interest or fees on the E uity oan for the first five years
of owning your home.
er that, you will be charged a
fee of .
of the e uity loan's value for the first year.
his will rise each year therea er by the increase in the
Retail Prices Index, plus 1%.
E uity loans are available to first time buyers as well
as homeowners looking to move, although you must not
own any other property at the time you buy your new
044 | OCTOBER 2017
home. Another condition is that the home you buy must
be newly built with a price tag of up to £600K, and you
must buy your home from a registered Help to Buy builder.
While the scheme is available in England only, the Scottish
Government, Welsh Government and Northern Ireland
Housing Executive run similar schemes - check out their
websites for more information.
The government's Help to Buy: Shared Ownership
scheme allows purchasers to buy as little as 25% or as
much as 75% of a home and pay rent monthly on the
remainder of the value of their home.
With Shared Ownership, you can buy a newly built home
or an existing property through a housing association resale
programme. You'll need to take out a mortgage to pay
for your share of the home's purchase price, or fund this
through your savings. You also have the option to buy
a larger share further down the line.
You could qualify for Shared Ownership if:
Your household earns £80K a year or less outside London,
WORDS: TRISH LESSLIE | IMAGES: GETTY IMAGES
THERE ARE MORE OPTIONS TO RAISE FINANCE FOR BUYING
YOUR HOME THAN A STANDARD 'HIGH STREET' MORTGAGE.
WE TAKE A LOOK AT THE DIFFERENT CHOICES