Rent to Buy
What is Rent to Buy?
Like a perfume bought at a department store, Rent to Buy is a ‘try before you buy’ style of home buying. It is a government scheme that lets first-time buyers rent a property before they buy it outright.
How does Rent to Buy work?
Through Rent to Buy, first-time buyers can pay subsidised rent on the home they live in for up to five years. After a set period (usually around two years), tenants can either buy the property or enter a Shared Ownership deal. If you do decide that the house is worth buying, you will gain 25% of the rent you paid, and 50% of any increase in the property’s value.
Is it better to rent or buy?
The eternal question. The renting vs buying debate ultimately comes down to your circumstances. A first-time buyer will find it much easier to rent a house, which doesn’t require a huge deposit. This makes Rent to Buy the perfect solution for someone who wants a home but doesn’t have the money to buy one straight away.
Help to Buy
What is Help to Buy?
The government's Help to Buy scheme gives a financial springboard for first-time buyers and home movers in the market for a new build home. If you need extra help getting on the housing ladder, this scheme is here to provide it.
How does Help to Buy work?
The 'Help' in Help to Buy comes from a Shared Equity loan of up to 20%, while letting home buyers put a 5% deposit down for a brand-new home. The loan that you get is interest-free for five years.
What is a Help to Buy equity loan?
You’ve heard of Help to Buy, but what of equity loans? An equity loan is a government loan that can be used in combination with a deposit AND your mortgage. In other words, it’s a smorgasbord of different financial options aimed at getting you the home you want.
Help to Buy ISA
What is a Help to Buy ISA?
The Help to Buy ISA is a government scheme that is built to make saving for a mortgage easier than ever. If you were wondering, ISA stands for 'Individual Savings Account'.
How does a Help to Buy ISA work?
A Help to Buy ISA is a savings account for first-time buyers, with the added help of a government bonus when it comes to buying your home. If you feel like saving for a house is taking forever, this scheme might be for you.
Can you use Help to Buy ISA for deposit?
Yes! You can use the savings from your Help to Buy ISA to bulk up your mortgage deposit. This won't impact the amount of your government bonus.