What is shared ownership?
The Shared Ownership Scheme has been a valuable source of support for first time buyers and home movers in York since the 1980s, helping them on their journey towards property ownership.
Also known as “part buy, part rent,” Shared Ownership in York allows individuals to purchase a share of a property, typically ranging from 25% to 75%, though the specific share can be lower depending on the mortgage lender. The remaining portion is paid as a rental charge.
This arrangement offers both flexibility and stability for home buyers, making homeownership a much more affordable and achievable option. One of the significant benefits of Shared Ownership is the possibility for homeowners to “staircase” in the future, meaning they can purchase additional shares in the property over time until they reach full ownership.
It’s important to keep in mind that Shared Ownership is limited to specific purpose-built properties that meet the requirements and guidelines of the Shared Ownership Scheme. These properties are carefully selected to align with the scheme’s objectives and provide an optimal homeownership experience for participants.
Can I buy my council house?
Many individuals find themselves renting before they can become homeowners, believing it to be a more affordable option. The reality, however, is that rental expenses, bills, and other regular outgoings often make it challenging to save enough for a home deposit.
If you’re currently renting and wish to purchase the home you’re living in, there is good news – you may be eligible to do so!
If you’re renting from a local council or housing association, you might qualify for the Right to Buy or Right to Acquire schemes, respectively. To be eligible, you typically need to have been a public sector tenant for at least three years.
Qualified applicants can benefit from a discounted purchase price, with the amount of the discount based on the length of your tenancy. Many mortgage lenders also consider this discount as a sufficient deposit.
While this discount may cover the deposit requirement in some cases, it’s still advisable to save for a deposit. Some mortgage lenders may still require a deposit, and having one can grant you access to more favourable interest rates.
If you’re a first time buyer looking for help to buy in York, reach out to your local authority, who owns the property, to determine your eligibility for the Right to Buy Scheme. They will provide you with the necessary information and guidance on a scheme that can help you achieve your homeownership goals.
Are 5% mortgages still available?
It is still possible for home buyers to secure a mortgage with a 5% deposit, provided they meet the mortgage lender’s criteria and demonstrate creditworthiness.
In the past, mortgage lenders were hesitant to offer high loan-to-value ratios, leading to the creation of mortgage schemes aimed at encouraging 95% mortgages with additional safeguards.
While these schemes may still benefit niche cases, most mortgage lenders today are open to applicants with a 5% deposit. It can be advantageous for both the lender and the applicant if the deposit is slightly higher.
Individuals with a poor credit history or lower income may be required to have a higher deposit of around 15-20% before they can be approved for a mortgage.
Saving for a deposit can be challenging, especially when aiming for more than 5%. This is particularly true for first time buyers in York who are looking to transition from rented accommodation. To address this, schemes supporting 95% mortgages were introduced to help those aiming for the minimum deposit.
Your mortgage advisor in York will carefully assess your financial situation and find a suitable mortgage lender who can help you in buying a home in York, even with a smaller deposit.
They will be transparent and provide you with all the necessary information regarding any specific home buying schemes that may be beneficial to you.
Does Help to Buy have to be a new build?
If you’re familiar with the Help to Buy Equity Loan, you may remember that the scheme was exclusively available for new build properties. With the conclusion of that scheme, however, most other home buying schemes are no longer limited to just new builds.
For individuals looking to purchase a new build property in York, there are still schemes specifically tailored to such situations. One of these schemes is designed to help local first time buyers in York.
Qualified buyers of new builds may have the opportunity to purchase at a discounted price. It’s important to note that if you decide to sell the property in the future, you will be required to offer a discount on the sale price as well.
This approach aims to promote an affordable home buying chain for future generations. It’s important to understand that not everyone will meet the eligibility criteria for these schemes.
Your trusted mortgage broker in York will carefully assess your circumstances and provide recommendations based on the best available options for you. They will guide you through the process and help you navigate the various schemes to find the most suitable one for your needs.
Can you get a mortgage on disability benefits?
It is key to emphasise that both mortgage lenders and mortgage brokers are legally obligated to refrain from discriminating against individuals with disabilities during the mortgage application process. They cannot deny assistance based on disability.
While financial considerations still play a significant role in mortgage applications, the good news is that some mortgage lenders are willing to consider applicants who receive disability benefits, although the process may take longer than usual.
For individuals with long-term disabilities who receive consistent benefits over an extended period, the chances of being considered for a mortgage are generally higher, however, those with shorter-term disabilities may face challenges due to the temporary nature of their benefits.
Fortunately, if you have a disability and are applying for a mortgage in York, there are schemes available to provide support. One option is a variation of the Shared Ownership Scheme, which can be applicable to purpose-built properties.
It’s important to be aware that eligibility requirements still apply to these schemes, however, individuals with disabilities can take solace in knowing that there may be a range of mortgage options available to them, irrespective of their personal circumstances.
What is a Lifetime ISA?
You may have come across the term Lifetime ISA, also known as LISA, which is an individual savings account aimed at helping individuals save for long-term goals, including purchasing their first home in York.
One of the key benefits of a Lifetime ISA is that the government provides a 25% bonus on your contributions, up to a certain annual limit, with a maximum cap on total contributions.
For example, if you contribute £2,000 in a year, the government will add an additional £500 to your savings account. It’s important to note that there are specific eligibility criteria to consider.
The age range for setting up a Lifetime ISA is between 18 and 39, and the funds can only be used for either a home purchase or retirement, with restrictions on withdrawals until a certain age.
In summary, a Lifetime ISA can be a valuable tool for gradually accumulating funds to achieve your future homeownership goals.
How to get a mortgage on a low income?
Securing a mortgage can present challenges, especially for home buyers with a low income. Mortgage lenders typically assess applicants’ income and financial stability to determine their ability to repay the loan.
A lower income may result in a restricted borrowing capacity since mortgage lenders view applicants with low income as higher risk. Meeting the affordability criteria set by lenders can be difficult for low-income home buyers.
Additionally, a lower income can affect the amount of deposit that can be saved, making it challenging to meet the lender’s deposit requirements. Fortunately, there are government schemes available to support low-income home buyers in accessing affordable housing options.
Some schemes specifically target individuals with lower incomes, providing them with opportunities to purchase properties at reduced or discounted costs. This makes homeownership more feasible and cost-effective for those with limited income.
It’s important to note that each scheme has its own eligibility criteria and may not be applicable to every situation. Speaking to a mortgage advisor in York can be advantageous when looking for help to buy in York.
How does Forces Help to Buy (FHTB) work?
Forces Help to Buy is a dedicated government initiative tailored to support members of the armed forces in their path to homeownership.
This scheme provides eligible personnel with an interest-free loan, allowing them to borrow up to 50% of their salary, with a maximum limit of £25,000.
The loan obtained through Forces Help to Buy can be utilised towards the deposit and other associated costs involved in purchasing a property.
This program recognises and addresses the unique challenges faced by military personnel, who often encounter difficulties accessing traditional mortgage products due to frequent relocations and deployments.
By providing financial assistance and favourable loan terms, Forces Help to Buy empowers servicemen and women to take a significant stride towards owning their own home, creating a stable living environment for themselves and their families.
This scheme plays a pivotal role in making homeownership more accessible and affordable for individuals serving in the armed forces, ensuring they have the opportunity to establish a secure foundation for their future.
Find out more information about the schemes available to you on the government OwnYourHome website.
Why choose us as your mortgage broker in York?
With an extensive history spanning over two decades, we take great pride in being a trusted and dependable mortgage broker in York. Our wealth of experience and unwavering commitment have allowed us to provide transparent and reliable mortgage advice in York.
You can place your complete trust in us to guide you through the process with utmost professionalism and expertise.
To ensure convenience for our valued customers, we offer the option to easily book a free mortgage appointment online.
Our team of knowledgeable mortgage advisors in York is readily available to speak with you at a time that suits your schedule, including evenings and weekends. We understand the importance of flexibility when making such a significant decision.
At Yorkmoneyman, exceptional customer service is at the core of our values. The genuine reviews from our satisfied customers serve as a testament to our dedication in delivering open and honest mortgage advice in York.
We are fully committed to finding the most suitable mortgage options tailored to your unique circumstances.
In the unlikely event that we are unable to secure a mortgage for you at the time of contact, we will always provide guidance on the best steps to improve your chances in the future.
Our ultimate goal is to support you on your journey to homeownership, offering valuable insights and recommendations throughout the process.
Why choose a mortgage broker in York over a Bank?
As a highly regarded mortgage broker in York, our team of dedicated mortgage advisors has unparalleled access to an extensive panel of lenders.
This invaluable advantage allows us to explore a wide range of mortgage deals and discover the perfect product tailored specifically for you.
Unlike the limitations of approaching a single bank, we have the flexibility to work with numerous mortgage lenders.
This gives us the ability to present you with a diverse selection of options, including specialised products designed to meet specific criteria.
Many customers who have faced mortgage rejections from their banks due to stringent lending criteria have found our assistance invaluable in such situations.
With our in-depth knowledge and expertise, we can navigate complex circumstances and find solutions that align perfectly with your needs.
We take great pride in offering same-day appointments with our mortgage advisors in York.
This speeds up the process, significantly reducing waiting times compared to appointments with traditional banks or building societies. We understand the value of your time and strive to provide efficient and timely service.
By choosing us as your mortgage broker, you can reap the benefits of our extensive lender network, personalised guidance, and prompt appointment availability.
We are dedicated to ensuring a smooth and streamlined mortgage journey for you, every step of the way.
Mortgage Advice for Help to Buy in York
To begin your journey, all you need to do is schedule your free mortgage appointment today. Our team of trusted mortgage advisors in York will assess your unique circumstances and provide guidance on how we can help you in achieving your goal of buying a property in York.