The dream of owning a house, preferably with a garden, in a beautiful area, is a certain kind of our atavism. Even our ancestors needed their own cave or shelter. It is related to the feeling of security, of having your own place on earth. Buying a home is a big deal, we will not deny it. There is lots of things involved, and of course there are costs. Most of us do not have enough cash to finance a property purchase – and this is where mortgage loans and government programs for first-time buyers appears.

A mortgage is a loan from a bank or building society which is taken out for the purpose of: buying a house or flat, building a house, extending, refurbishing, and modernizing an existing property, purchasing land or any other type of property. It is a secured loan, meaning money are borrowed provided that, you pay it back within a certain number of years, otherwise property can be repossessed by the mortgage lender.

Choosing the right mortgage is very important because it is a long-term commitment and comes with significant costs. The UK mortgage market is strongly competitive. As a result, to increasing demand and sophistication on the part of borrowers, who are shopping around for the best deal, there is a wide range of products offers from a range of financial institution on the market. It is worth comparing the offers of various lenders, as the right choice among those offered on the market can save thousands of pounds.

In the offer: 

FIRST TIME BUYERS

BUY TO LET

COMMERCIAL MORTGAGES AND LOANS

BRIDGING LOAN

SECOND CHARGE LOAN

REMORTGAGE / PRODUCT TRANSFER – offers for people who already have a loan and are approaching the end of the current contract!

Government programs for first-time buyers

Rising property prices are a factor that contributes to the difficulties experienced by people seeking to buy their first home. Nevertheless, first-time buyers are crucial to the overall health of the housing market, as without these new entrants, upper-tier homeowners are unable to sell and trade. There are many government programs available to first-time buyers that can make buying a home a little cheaper. Government efforts to support first-time buyers include exemption from SDLT (land tax), requirements for new investments in inexpensive housing and projects such as:

Help to Buy

Help to Buy is a program available only to first-time buyers. Eligible buyers can obtain an equity loan from the government ranging from 5% to 20% (up to 40% in London) of the value of newly built Help to By registered properties. The loan is interest-free for 5 years, after which the interest rate is 1.75%. The amount that the borrower must pay back increases with the value of the house / flat. The minimum required deposit is 5%. People who have owned a home or a residential land in the UK or abroad are not eligible.

Help to Buy ISA

The Help to Bay ISA program is also available to the first time buyers only, unfortunately it has closed to new applicants. People who already have an account can continue to deposit the maximum monthly amount of £ 200 until November 2029 and take advantage of a 25% government bonus (maximum £ 3,000) until November 2030.

Lifetime ISA

The Lifetime ISA (LISA) program is designed to help people save for their first home or retirement. You must be at least 18 years old or under 40 to open Lifetime ISA. The maximum amount that can be deposited is £ 4,000 per year (this can be cash as well as stocks and shares). Savings can be made up to the age of 50, and the first payment must be made before the age of 40. Likewise, Help to Buy ISA, the government will add 25% to your savings (maximum £ 1000 per year). Collected savings can only be withdrawn if you buy your first home worth no more than £ 450,000, you are aged 60 or over or if you are terminally ill. If your withdrawal is due for any other reason, you will have to pay withdrawal charge of 25% for the unauthorized withdrawal

Paulina Lukasik, is a Registered Individual of Charles Crown Group Ltd who  is authorised and regulated by the financial conduct authority FCA reg: 774448

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED UPON IT.