First Time Buyer Government Schemes

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Why Choose Ascot Mortgages

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5-star reviews on Google
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total donated to various charities
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years we have been as independent mortgage and protection brokers
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customer satisfaction for finding the best deals on the UK market

What Our Clients Say About Us

5.0 Based on 135 reviews from review us onNicholas S. ★★★★★ Fantastic service. Ellie and Jardelle were always quick to reply to any queries and very helpful throughout the process. Highly recommend!Stacey S. ★★★★★ Jason was brilliant to work with! Always on top of the transaction! Would highly recommend 👍Scott ★★★★★ Although I've not bought anything yet, they (Jason in particular) have been super helpful in my search for the right mortgage deal, whilst also giving an honest opinion during these difficult times. Would highly recommend.Sandra I. ★★★★★ Fantastic from start to finish! Natalia and Jason found me the best rate for my remortgage and they were extremely efficient! Best service I’ve ever received from a brokerage company. Thanks so much.Virmantas N. ★★★★★ Amazing service and great communication. Ellie Morgan had quickly completed all requests and over delivered all expectations.Highly recommended for those who want to get the stuff done without any delays!David W. ★★★★★ I have used ascot for 3 renewals since they done helped me with my purchase which was complicated and will continue to use them going forward. Very fair prices and very helpful and knowledgeable even with just general information.Adam B. ★★★★★ Natalia made life very easy for us when remortgaging. Third time using ascot always a breezeTaff G. ★★★★★ Ascot Mortgages have been brilliant. Easy to work with and incredibly helpful. I am always happy to recommend them. Natalia and Jason have made the whole process much easier than I was expecting. Excellent service.Daryl L. ★★★★★ We've had a fantastic experience with Natalia Barry and Jason Jones at Ascot Mortgages for our property purchases and refinancing. Their expertise, coupled with genuine care and understanding of our needs, made the process smooth and stress-free.They were consistently communicative, keeping us informed at every step. Their assistance in consolidating our protection cover was invaluable, simplifying what could have been a complex process.What set them apart was their personal touch – always polite and ready to pick up the phone for a chat. This level of personal engagement is rare and much appreciated.In short, Natalia and Jason are not just skilled professionals but also truly dedicated to their clients. We highly recommend their services to anyone in need of mortgage advice.Jason J. ★★★★★ Great company!Sarah A. ★★★★★ I have used this firm for several years and they have always been super helpful and supportive, attentive and resolved issues in really useful ways. Shout out to Alison, Ellie and Jardelle (and the team!)Georgia W. ★★★★★ We worked with Ellie to secure our mortgage and protection, and she was a dream! Being a first time buyer, I was quite clueless about the process, and in a time where mortgage rates have been quite high, she worked right til the end to make sure we were getting our mortgage at the best possible rate and was always available to answer all questions I had. Can't recommend enough 🙂Richard D. ★★★★★ Laura S. ★★★★★ As a first time buyer, trying to navigate through potential mortgages was a very daunting thought. Ascot Mortgages were recommended to me and I've been extremely happy with the service provided. They have guided me through every step and I finally have a mortgage. Very pleased and would recommend.Lucy B. ★★★★★ Having Phil as my mortgage advisor was great from the very start! He is down to earth and speaking to him was always a pleasure. The kindness, compassion and support I have been given all the way through what can be a stressful process was immeasurable. Phil and Jardelle worked as a solid team and was able to make me feel at ease all the way through buying my first home. The team were always available and the communication between everyone was always clear and I felt safe in the hands of the company as a whole. Thank you for helping me buy my first home!Flora R. ★★★★★ I worked with Richard (Protection Adviser) for a couple of days to sort out life and critical illness insurance. Absolutely brilliant, he found me and my husband the perfect policy. Very knowledgeable and easy to get on, he definetely makes things easy to understand. Thank you for the great service provided.Matthew R. ★★★★★ I've dealt with Phil at Ascot Mortgages for a while now and Phil always comes back back to me with the right plan.Keep the good work up!rafal W. ★★★★★ I would thoroughly recommend Phil Greenwood at Ascot Mortgages ltd to anyone looking to seek advice on purchasing a home.Phil was absolutely fantastic. He made the process very smooth and easy and was always there to answer any questions I had.Shahid L. ★★★★★ This company has been truly amazing in constantly giving me the support and help i need for my mortgage and for their continuous work ethic guiding customers like myself and educating them into making the best possible decisions. My special mention goes to Phil Greenwood who deserves every single credit for his brilliant work and communication skills. The more I got to work with Phil, the more he gained my respect as he is a hugely likeable man and possibly the best mortgage advisor yet. Even after I finished my time with Ascot Mortgages, I will never lose my trust in the company and I hope they exceed their business and gain even more success and popularity.Best wishes,Shahid Latif and familyPretty L. ★★★★★ Phil helped me renew my mortgage. He was great at keeping me updated with any rate changes and secured a lower rate than at the time my mortgage went through. Thank you Ascot for your supportNikki E. ★★★★★ Huge thanks to Richard Johnson for sorting out all of my insurance policies! I had accumulated a variety of life cover and various other policies over the years that all needed a good review and refresh. Richard was extremely patient and helped me to remove the duplication and choose the best cover to suit our current needs. I have used Ascot Mortgages for over 12 years and have met several members of the team, always finding the right help and support to work through what can be a complicated and stressful time. Thanks again, Richard!Andrew T. ★★★★★ Working with Richard at Ascot has been a great experience. He listened to us and was very professional throughout. This was our first experience with Richard but we've been using Ascot now for 6-7 years. Thank you all at AscotAngie B. ★★★★★ Always give a great service and find you a mortgage in a timely fashion.Alison is awesomeAndrew M. ★★★★★ We have used Ascot Mortgages for over 5 years now and have had excellent service throughout, primarily with Alison and Kevin. Our latest dealings have been with Richard Johnson who although new to us (and to Ascot I believe) has once again provided the 5 star level of service we have come to expect. His product knowledge is excellent offering a range of options supported with consistent communication and updates, always available on the phone or on email every step of the way.Ali H ★★★★★ Excellent service, a big thanks to Natalia Barry for her excellent support with my buy to let mortgage application, Natalia was professional, transparent, and kept me informed during all the process, and thanks to Jason jones for his assistance and support.js_loader

The mortgage market is slowly starting to get more competitive with new, better value mortgages becoming more available… But lenders are still cautious and the majority of the best rates are only available if the borrower has a large deposit or equity. Sadly that is unlikely to be the case for most first time buyers, who understandably struggle to raise just 5% deposit with the sky high rental market. It can be a frustrating catch 22 situation, and not just for the first time buyer – but the building industry is also suffering due to lack of funding for first time buyers, despite the desperate need for more housing.

Thankfully the government is trying to do something about this, and despite all the news headlines, the various schemes are helping buyers to secure funding which would otherwise be out of reach.

The first time buyer government schemes all seem to have similar names, and many people get them confused, so here we try to briefly explain what each one offers and what you need to qualify. For more information, or if you are unsure which is the best scheme for you please get in touch with Ascot for a free initial telephone consultation, and we will explain which is the right one for you.

Written by:

Alison Gibson

Ascot Mortgage Expert

Last Updated:

26.02.2024

Written by:

Alison Gibson

Ascot Mortgage Expert

Last Updated:

26.02.2024

Help to buy

This scheme, which was introduced in March 2013, is designed not only for first time buyers, but anybody looking to buy a newly built home, up to the value of £600,000. The scheme asked first time buyers to contribute a deposit of five per cent; the Government adds a loan for twenty per cent of the price; and the mortgage covers the other 75 per cent. For the first five years of the Government loan, you will not be charged any fees or interest, but from the sixth year you will be charged 1.75 per cent of the loan’s value, and the fee will increase annually.

The benefit of this scheme is that the home is in your name, so you can sell the property at any time. The Government’s loan must be paid back by the end of the mortgage period or if you sell your home: whichever comes first. So long as the loan is for at least ten per cent of your home’s value, then you are able to pay back either ten or twenty per cent of the Government’s loan without selling the property.

Shared ownership schemes

These schemes are specifically designed for first time buyers, or people who used to own a property but no longer do. This scheme is only available to those who earn less than £60,000 per year, as a household. The principle of the agreement is that you buy a share of the home (this can range from 25 to 75 per cent), which you need a mortgage for. The rest is paid back through rent to the housing association, where you buy the home from. You can staircase, i.e. buy more shares in the home, at anytime you like, and you can do this through the housing association’s valuation. If you want to sell the property, then you can but you must give the housing association first choice on buying it: this stands for the first 21 years after you buy the home.

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New Buy

This scheme asks for only a five per cent deposit. The property must be a new build, in that it’s completely new or it is being sold for the first time in its current form (so it might have been an old house, but turned into new flats.) The value of the property must be £500,000 or less, and the scheme cannot be used to buy a second home, or a buy to let property, and must be owned fully by you (i.e. not part of the shared ownership scheme). In addition, the scheme only applies if the builder who you are buying from is taking part in the scheme. You don’t need to be a first time buyer, and there is no income restriction on this scheme: the criteria is that you can repay the mortgage, and you apply for a mortgage through a lender, as you would usually.

Right to Buy

This scheme applies to a council tenant, or a council tenant who was living in the property when it was sold to a private landlord. The tenant must have been living in the property for five years or more. The scheme allows tenants to benefit from the increased security and investment, of home ownership because it gives a discount on the purchase price of their property. The maximum discount is £75,000, or £100,000 if you live in London.

Alison Gibson

Ascot Mortgage Expert

Unlocking New Possibilities: The Power of Remortgaging Your Home

Discover How Remortgaging Can Secure Your Financial Success and Home Upgrades

living in your present property while applying for another mortgage deal with a new lender. Before finding out how to remortgage and get the best offers from experts like Ascot Mortgages, you have to check meeting what parameters of the deal that can help you succeed the most. The range of background factors varies a lot — from the recently changed loan-to-value ratio or your existing agreement coming to an end.

Whether you are trying to get a more beneficial deal or searching for funding to improve your home conditions, remortgaging is one of the most advantageous scenarios to consider.

First Buy

As the name suggests, this scheme is tailored for first-time buyers and it means that the Government, and the developer, will give first-time buyers a twenty percent equity loan to assist with the purchase of a house, up to the value of £280,000. Like the ‘Help to Buy’ scheme, the loan is free for the first five years, and then it increases to 1.75 percent per annum and will increase annually: if you sell the house, you need to pay this loan back first. The buyer in this scheme will need a five percent deposit, and then after the first year of home ownership will be able to staircase, through paying off some of the Government’s loan to own that share of the property. Although you will have a mortgage for less than 100 per cent of the property’s value, you will own the whole property.

People who want to take part in this scheme must be unable to buy a house without assistance, and not earn over £60,000. There must be evidence that the applicant can pay other costs, such as legal fees and stamp duty, and be on a permanent contract of employment. You must have a good credit history, and must not be named on any other property’s mortgage or deeds.

All these first-time buyer government schemes are ideal to help struggling first-time buyers get onto the property ladder but like any financial contract, they must be treated with caution. Using a broker like Ascot Mortgages is one way of getting impartial and sensible advice, which will allow you to benefit from these opportunities and know that they are the right choice for you – please get in touch to arrange a free initial telephone consultation.

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FAQ

A guarantor mortgage is a type of mortgage that involves a third party, usually a family member or close relative, guaranteeing the mortgage repayments on behalf of the borrower. This arrangement is more commonly now known as joint borrower sole proprietor as the guarantor essentially is included as part of the mortgage application but not included on the title deeds to the property.

Shared ownership is a form of home ownership that enables buyers to purchase a share in the property and pay rent on the remaining amount. The buyer usually pays an initial deposit, which is between 5% to 10% of the price of the share being purchased, and then pays a reduced rent on the remaining portion owned by a housing association or other organisation.

A joint mortgage is a type of mortgage that two or more individuals take out together to purchase a property. It allows multiple borrowers to combine their incomes and share the responsibility of repaying the mortgage loan.

The loan-to-value ratio (LTV) is a financial term that represents the ratio between the loan amount and the appraised value or purchase price of an asset, typically a property. It is commonly used by lenders to assess the risk associated with a loan.

Repayment and interest-only mortgages are two different types of mortgage repayment structures. Here’s an explanation of each:

  • Repayment Mortgage: A repayment mortgage, also known as a capital and interest mortgage, is a type of mortgage where your monthly payments cover both the interest on the loan and the repayment of the principal amount borrowed. Over the term of the mortgage, typically 25 to 30 years, your monthly payments gradually reduce the outstanding balance. At the end of the term, assuming all payments have been made, the mortgage is fully repaid, and you own the property outright.
  • Interest-Only Mortgage: An interest-only mortgage is a type of mortgage where your monthly payments only cover the interest charges on the loan. Unlike a repayment mortgage, you do not make any principal repayments during the term of the mortgage. As a result, the outstanding balance of the loan remains the same throughout the mortgage term. Therefore your monthly payments are less. However, lenders may restrict the maximum loan to value on an interest only basis – generally between 50% to 75%.

With an interest-only mortgage, you are required to have a separate plan or investment vehicle in place to repay the principal amount at the end of the mortgage term for residential mortgages. This could involve savings, investments, or other arrangements that aim to accumulate sufficient funds to pay off the loan. It’s crucial to ensure that the repayment plan is robust and will be able to cover the loan amount. For Buy to Let mortgages lenders will typically accept sale of the security property as the investment vehicle.

Consider a longer-term mortgage if:

  • You prefer lower monthly payments to manage your budget.
  • Affordability is a priority, allowing you to allocate funds to other financial goals.
  • You plan to sell or refinance in the near future.

 

Opt for a shorter-term mortgage if:

  • Minimizing total interest payments is important.
  • Building equity quickly is a priority.
  • You plan to stay in the property for an extended period.
  • Ultimately, the decision should align with your financial circumstances and goals.

Consulting a mortgage advisor can provide personalized guidance.

Yes, it is possible to get a buy-to-let mortgage as a first-time buyer, but it can be more challenging. As a first-time buyer lenders may view you as a higher risk and will also base their lending decision on both rental income and your own personal affordability. However, if you have a good credit score, a stable income, and a solid business plan for your rental property, you may be able to secure a buy-to-let mortgage. It’s important to shop around and compare different lenders to find the best deal for your individual circumstances which is why contacting a mortgage broker for the right advice is a good solution.

Yes, you can get a first-time buyer mortgage if you’re self-employed but most lenders would require a 2 year minimum trading history. However, additional requirements may apply. You’ll need to provide evidence of income, such as business accounts and tax returns. Lenders may request an accountant’s certificate and consider your trading history. A larger deposit may be required. Specialist lenders may cater specifically to self-employed borrowers. It’s best to consult with a mortgage advisor or lenders directly for personalized guidance.

Apply for a first-time buyer mortgage when you have prepared your finances, saved for a deposit, and are ready to commit to homeownership. Consider obtaining a Decision in Principle before house hunting. Consult with a mortgage advisor for personalized guidance.

When budgeting for homeownership, consider the following costs: –

  • Deposit: Set aside funds for the down payment on the property.
  • Stamp Duty or LBTT: Pay the property tax based on the purchase price.
  • Solicitor or Conveyancer Fees: Budget for legal services.
  • Valuation and Survey Costs: Account for property valuation and survey expenses.
  • Mortgage Fees: Consider arrangement or booking fees associated with the mortgage.
  • Home Insurance: Plan for building and contents insurance.
  • Moving Costs: Budget for expenses related to moving your belongings.
  • Ongoing Costs: Include mortgage repayments, council tax, utilities, maintenance, and service charges.

Ensure you research and estimate these costs to create an accurate budget. Our advisors are always available to assist you in finding the most suitable deal for your unique situation.

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Searching for your first-time home? Ascot Mortgages is your go-to resource! Our experts specialize in assisting first-time buyers and have access to a diverse range of mortgage options. Whether you’re looking for a cozy apartment or a spacious house, we’ll find the perfect financing solution for you. Contact Ascot Mortgages today to discuss your first-time buyer requirements and embark on the exciting journey of homeownership.

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