Home Buying Mortgage Advice in Leeds

In the early part of the last decade, the UK government launched the Help to Buy initiative. This was an expansion on their previous FirstBuy Scheme, aiming to assist potential homeowners, particularly first-time buyers, to step onto the property ladder. Over the years, some of these schemes have ceased to exist, while others have persisted without the Help to Buy moniker. The best-known and most frequently used one was the Help to Buy Equity Loan Scheme, which stopped accepting new applications at the end of 2022.

This implies that first-time buyers can no longer use Help to Buy in Leeds or elsewhere in the UK, but this doesn’t mean they’re left without any avenues to homeownership. Other well-designed schemes are still available to assist potential home buyers in Leeds!

Forces Help to Buy Scheme

The forces help to buy schemes in Leeds was initiated to enable regular personnel of the armed forces to become homeowners. With a significant number of these men and women finding it challenging to secure a mortgage, this initiative was unveiled. It began as a trial program, but due to its successful reception and usefulness, the government decided to permanently implement it.

Eligible borrowers under this scheme can get up to 50% of their yearly salary, capped at £25,000. This borrowed amount can be used towards the deposit or other fees associated with buying a house, for example, solicitor’s and estate agent’s fees. The application process can be done through the Joint Personnel Administration System, or with the aid of a mortgage advisor in Leeds.

As a mortgage broker in Leeds, we’re here to clarify the intricacies of this scheme and help you determine your eligibility. Let us handle the details for a worry-free and straightforward mortgage experience.

Shared Ownership Scheme

With shared ownership, buyers can own a portion of a property, with a housing association owning the remaining percentage. This implies that you will be paying a mortgage based on the percentage you own, and rent on the housing association’s ownership share. Typically the property percentage share to be purchased lies between 25%-75%, though exceptions can be made.

With time, should your financial capability increase, or after you’ve paid off your share, you can decide to purchase the rest of the property if the housing association allows it.

Lifetime ISA

Although it isn’t prominently mentioned in the mortgage market, the Lifetime ISA (Individual Savings Account) scheme greatly contributes to getting first time buyers in Leeds to own homes. It is often confused with the already expired Help to Buy ISA, hence, the underutilization of the scheme.

The Lifetime ISA in Leeds allows you to save for either your first home or for later life. The account lets you save money in an interest-free savings account, with the government adding a 25% top-up for the amount you’ve saved each year.

To access your savings for a property purchase, you must have operated the Lifetime ISA for a minimum of 12 months. There are also penalties for unauthorized withdrawals, usually ranging between 20-25% of the saved amount.

Date Last Edited: September 20, 2024