Help to Buy was introduced in the 2010’s, off the back of the UK government’ previous FirstBuy Scheme. With a series of pre-existing and new schemes placed under that banner, it was designed to help first time buyers get onto the property ladder.

Over the years we have seen schemes under this banner disappear, whilst others have carried on without that branding. The most popular and well-known of these was the Help to Buy Equity Loan Scheme, which was closed to new applicants towards the end of 2022.

What this means is that first time buyers in Manchester are no longer able to use a Help to Buy in Manchester or anywhere in the UK, though this doesn’t necessarily mean that support for home buyers has ended. There are still a variety of schemes that can help to buy in Manchester!

Shared Ownership

This initiative was launched to permit prospective buyers to apply for a mortgage covering a portion of their dream property’s total cost, with the remaining percentage repaid monthly as rent. Most applicants end up owning between 25-75% of their home under this scheme, but there are exceptions where only 10% goes in their name. The remainder of the property is held by a local housing association, council, or other possible stakeholders.

Under the shared ownership structure, you’re required to make monthly rent payments to your landlord (the provider) as well as mortgage repayments on the percentage of the home you own. Please note, the property will be under leasehold tenancy, which typically entails ground rent and service charges billed monthly. Regardless of the proportion of the property you own, you’re responsible for 100% of these monthly fees.

In the future, you may have an opportunity to buy additional shares, which reduces your rental outlay, a process known as “staircasing”. You’re free to purchase a new property, a shared ownership resale home, or a property tailored to special needs, such as a long-term disability.

Forces Help to Buy

Hot on the heels of the Help to Buy Equity Loan Scheme success in 2014, the government rolled out the Armed Forces Help to Buy Scheme. This scheme, similar in design but with an emphasis on making it easier for UK armed forces personnel to secure property, is an efficient tool for those meeting the defined criteria.

The scheme was set to expire soon, but the government has extended its tenure to December 2022! We’re thrilled at this development, given the scheme’s immense benefits for armed forces personnel securing financing for a house.

Lifetime ISA

While the Lifetime ISA often goes under the radar in discussions surrounding home purchasing assistance, it nonetheless could be a beneficial tool for certain first time buyers in Manchester.

Essentially, a Lifetime ISA in Manchester is a savings account where funds deposited grow tax-free. Moreover, the government boosts your savings by an additional 25%. If you achieve the maximum yearly deposit of £4,000, you stand to receive a handy bonus of £1,000.

There are specific requirements to qualify for the Lifetime ISA Scheme.

Mortgage Guarantee Scheme

The Mortgage Guarantee Scheme is a significant initiative aimed at making homeownership more attainable, particularly for first time buyers and home movers in Manchester.

This scheme allows buyers to secure a mortgage with just a 5% deposit, providing a substantial boost to those struggling to save larger sums. The government backs 95% loan-to-value (LTV) mortgages, reducing the risk for lenders and encouraging them to offer these high LTV products.

Since its launch, the Mortgage Guarantee Scheme has helped many individuals and families achieve their dream of owning a home.

There are specific eligibility criteria to meet for the Mortgage Guarantee Scheme in Manchester. If you want to see whether you qualify, feel free to reach out to a member of our team of head to the OwnYourHome.gov.uk website.

Book Your Free Mortgage Appointment

With us, you’ll always have a dedicated mortgage advisor in Manchester dedicated to prioritising your needs. Your mortgage advisor will address any concerns or queries you have, ensuring you’re well-informed throughout the process and beyond.

By staying closely involved, we keep you updated on any changes and promptly request any necessary information to advance your mortgage application. Speaking to a mortgage broker in Manchester allows you to stay proactive in the mortgage process.

Our team of trusted mortgage advisors in Manchester are able to help with arranging your mortgage agreement in principle within 24 hours of your initial appointment, which is something you’ll benefit from having when it comes to property negotiations.

Date Last Edited: November 8, 2024