United Kingdom : Government Mortgage/ Home Ownership Scheme England

Name of the Organization : Government of United Kingdom
Type of Facility : Government Mortgage/ Home Ownership Scheme
Country : United Kingdom

Website : https://www.gov.uk/affordable-home-ownership-schemes/overview

Government Mortgage/ Home Ownership Scheme :

You may be able to get financial help through a government home ownership scheme if you live in England and can’t afford to buy a home.

Related : UK Jobseeker’s Allowance Online JSA : www.statusin.org/7073.html

Wales, Scotland and Northern Ireland have different home ownership schemes.

The 4 types of home ownership schemes are:
** Help to Buy: equity loans
** Help to Buy: mortgage guarantees (available across the UK)
** shared ownership
** Help to Buy: NewBuy

Contact the Help to Buy agent in the area where you want to live to find out more about Help to Buy equity loans and shared ownership schemes.

Help to Buy: mortgage guarantees
Mortgage guarantees helps you buy a home with a deposit of 5% of the purchase price. It’s open to both first-time buyers and home movers for new-build and older homes in the UK with a purchase price up to £600,000.

The guarantee is provided to your mortgage lender by the government – not to you.

Eligibility:
To qualify for a mortgage guarantee, the home you want to buy must:
** have a purchase price of £600,000 or less
** not be a shared ownership or shared equity purchase
** not be a second home
** not be rented out after you buy it

The property doesn’t have to be newly built.

You don’t have to be a first-time buyer and there’s no limit on your level of income. But you can’t use Help to Buy with any other publicly funded mortgage scheme, or an interest-only mortgage.

How to apply:
You can apply directly to any lender taking part in the scheme:
** Aldermore Bank
** Bank of Ireland (Northern Ireland only)
** Bank of Scotland
** Barclays
** Halifax
** HSBC
** Al Rayan Bank (formerly the Islamic Bank of Britain)
** Lloyds Bank
** NatWest
** Post Office
** RBS
** Santander
** Ulster Bank
** Virgin Money

The lender will check you’re able to make the repayments before they offer you a mortgage.

Buying through shared ownership :
** You can get a shared ownership home through a housing association. You buy a share of your home (between 25% and 75%) and pay rent on the rest.
** There are different rules in Northern Ireland and Scotland. Contact your local authority to find out about buying a shared ownership home in Wales.

Eligibility :
You can buy a home through shared ownership if your household earns £80,000 a year or less (or £90,000 a year or less in London) and any of the following apply :
** you’re a first-time buyer
** you used to own a home, but can’t afford to buy one now
** you’re an existing shared owner

How it works :
** Shared ownership properties are always leasehold.

Older people :
** If you’re aged 55 or over you can buy up to 75% of your home through the Older People’s Shared Ownership (OPSO) scheme. Once you own 75% you won’t pay rent on the rest.

Disabled people :
** You can apply for a scheme called home ownership for people with a long-term disability (HOLD) if other Help to Buy scheme properties don’t meet your needs, for example you need a ground-floor property. With this scheme you can buy up to 25% of your home.
** If you’re disabled you can also apply for the general shared ownership scheme and own up to 75% of your home.

Buying more shares :
** You can buy more of your home after you become the owner. This is known as ‘staircasing’.
** The cost of your new share will depend on how much your home is worth when you want to buy the share.

It will cost :
** more than your first share if property prices in your area have gone up
** less than your first share if property prices in your area have gone down
** The housing association will get your property valued and let you know the cost of your new share. You’ll have to pay the valuer’s fee.