Are you struggling with paying the house rent? Need your own home? But low on budget? Don’t worry; we have got you!
Buying a house of your own in London is still a dream of many, and we at UR Mortgage can help you fulfill that dream.
We will carefully assess your needs and identify ways with which we can help you live your dream.
The government has launched a scheme for all the people who want to purchase their first home in London, and the project is called the “LISA Scheme,” which comes under the first home scheme.
In the 2021 budget, the government has launched a new scheme for all first-time home buyers. This collateral government scheme offers all the lenders the freedom to purchase a guarantee on collateral where the individual has to make a deposit of only 5%.
Or, in simple words, the government will allow the first-time mortgage buyers with only a 5% deposit to purchase a house worth up to 600,000 euros.
Now you all must be curious about who is eligible for this scheme?
· This new scheme is open for anyone who is looking to buy an apartment and is not just for first-time buyers.
· The home you plan to purchase should be priced less than £600,000 to avail of the scheme’s benefit.
· The apartment which you are about to buy or purchase should not necessarily be a newly built apartment, it can be an old build apartment, for it to be eligible under the “Help to Buy equity loan scheme in accordance with the government policies.”
· According to the usual affordability checks, first-time mortgage buyers will be offered, so don’t assume you will get one which means that the borrower will have to meet some of the standard rules and protocols to justify the level of borrowing required and eligible for the scheme.
· An individual can only take out repayment collateral using the system as there will be no interest which -only available for first-time mortgage buyers.
· This scheme cannot be availed to purchase rental properties, so firstly, you must buy a home that you will live in.
· An individual rather than a company must take out the loan.
· There may be strict rules around an individual’s maximum salary, which is multiplied by the various risk factors associated with more significant deposits in mortgages. For instance, we could see a maximum income multiple of 4.5, but this remains to be seen.
Who else will benefit?
The new government mortgage 2021 guarantee scheme is also a part of the jobs plan. This scheme will be seen to support the entire housing market after the end of this current stamp duty holiday and as the country comes out of lockdown due to the pandemic, one can take guidance from first time home buyer experts in London or any other parts of the nation
Due to the increased demand for job and market activity in the nation, “this scheme will help grow jobs and businesses across the housing supply & real estate chain across the country, including all the housebuilders and estate agents to tradespeople.
How can we help you/Why us?
-We provide FREE consultation for first-time users
-Exclusive offers are available for our customers on their purchase through us
-You will get access to 120+ lenders through us.
–First-time homebuyers can get up to 90% mortgage which means you have to make a 10% upfront payment.
Who is not eligible?
The majority of the individuals who are under the age group of 24 years comprise half of the unemployed people consist only 11% of the total workforce; this will add insecurity on the minds of all the lenders who will only hand out money to those with a secure income — that is people under the age group (25–34 years) despite any collateral guarantee from the government.
Other benefits associated with first time buyers:
Lifetime Isa: You can save up to £4000 a year in a tax-free Lifetime Isa and the government will add a 25% top-up for a maximum value of £1000 per year. One must be aged between 18 to 39 years and should have never owned a home to get one, which is then used to buy your first home or a pension.
2)Help to Buy Isa: this is another tax-free savings account in which for every £200 you deposit; the government will add another £50 to your account. This is currently closed to new applicants in November 2019; you have until Nov 2029 to use it if you already have one.
3)Shared ownership — You buy between 25–75% of a property, sharing ownership with a housing association, and you will pay the rent for the remaining due. The government is planning to open the scheme out to include those who buy just 10% in the future.
4)First Homes pilot — The government has opened a new and yet affordable housing plan for individuals in Jun 2020, offering thousands of discounted homes to first-time buyers.
5)Help to Buy: Equity Loan scheme — this came into effect after April 2021 to March 2023 and is only available for first-time homebuyers. The government also plans to lend buyers up to 20% of the total cost of a new house in England (up to 40% in London) so that they only need a 5% deposit and get up to 75% mortgage value. The loan amount is usually approximated to about 1.5 times the price of the average first-time property price in the area you are willing to buy.
6)The Bank of Parents(Mom & Dad) — If your parents can help you with the purchasing of the property investment amount, the more deposit you can put down, the better the mortgage rate you will get. However, some nationwide lenders usually limit the amount that parents can contribute.
Now you must have a clear picture of the new scheme and how you can take full benefit out of this.
If you need any assistance feel free to contact us directly
or you can visit our website to learn more.
We are a leading mortgage service provider in the market and will try our best to provide you with the best services at an affordable yet comfortable price because we believe that your dream is our dream.
We will be privileged to assist you with all the benefits available under the “First Home Scheme” under our best and professional expert guidance.
Contact us for more inquiry at +44-795-6298-310 +44 208 1917 195
Email: [email protected]