The Money Advice Service states that four out of five Britons would prefer to own their own home than rent, and with limited properties available and high rental costs, it’s not difficult to see why. Purchasing your own home is now more cost-effective than renting in almost half of Britain’s 50 biggest cities. Yet many tenants feel their dream of owning their first home is far out of reach, so we are encouraging them to take action.
Over 40% of purchasers at our Scholars Village development in Folkestone have used the government Help to Buy scheme, which has been hugely successful in helping many first-time buyers get on the property ladder. You typically only need to find a 5% deposit and the government will then lend you up to a further 20%. With a required mortgage of just 75% of the value of the property, that first home becomes significantly more achievable.
Even if you think you’re years away from being able to get on the ladder, it is always worth speaking to a financial advisor to explore your options. The HTB scheme is only available on new build homes, and is free for the first five years.
And to make saving for that first home even easier, Pentland Homes are offering a savings match scheme, where they will match savings of up to £1,000 per month between 1st October and 31st December 2016. The Money Advice Service recommends these steps to help save for that initial deposit:
1) Look at options on how to reduce the deposit you need to save. The Council of Mortgage Lenders estimates that eight out of ten under-30s now rely on help from parents to buy their first home, so the Bank of Mum and Dad is likely to be the first port of call. Joint purchases with friends and family may also be an option.
2) Once you know how much you need – taking in to account legal fees, stamp duty and moving costs – work out how much you can put away each month. The Money Advice Service has an online savings calculator that can help you with this.
3) Set up a savings accounts – using comparison websites to find the best one for you – and set up a direct debit or standing order to automatically transfer a set amount each month.
4) Review your savings at least once a year to ensure you are getting the best rates.
For more information on HTB or our savings match scheme, speak to our sales advisors.
Posted: Friday, September 30, 2016
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