First Time Buyers Using Help To Buy

Being a first-time buyer is scary, a little bit concerning combined with a dash of hopelessness – at least, that’s what we are told. We are told that to be a first-time buyer is to have more opportunities ahead of us in the world than ever before, but without any way of attaining them. House prices have, it’s fair to say, skyrocketed to leave first-time buyers at a disadvantage but that doesn’t mean it’s impossible to own a property.

Help to Buy is the government scheme setup to bridge the gap between normal working income and the first deposit for a home. This scheme has been vitally important to give first-time buyers the boost that they need to get closer to owning their own little patch of land in the UK. If you are thinking of using Help To Buy you will come across a vast array of information that can seem overwhelming.

At MacFarlaine & Brooks our job is to give you the rundown of the three facets of the scheme that relate most to first-time buyers and what they involve.

  1. Help To Buy – Shared Ownership: Buying and investing in shares seems like something best left for the professionals. However, one of the most popular areas of the Help To Buy scheme is shared ownership. This allows you to own a share of your home and pay rent on the rest of it. The scheme is suited to first-time buyers that are looking to invest in a new build property because part of the huge pay-out can be devolved to a secure loan system. You will be asked to pay at least 25% or up to 75% of the property price and the rest will be slowly paid back through renting.
  2. Help To Buy – Equity Loan: The deposit is one of the most difficult things to save up for. When you call upon an equity loan with Help To Buy, you will pay around 5% of the property price for the deposit. This will instigate a 20% boost from the government. The remaining 75% will be devolved to a mortgage lender. First-time buyers who can only viably save up enough for the 5% deposit now have the chance to find a home.
  3. Help To Buy – ISA: Most people in the younger generation will have the tag ‘first-time buyer’ over their heads for a long time. Owning a property will require a lot of saving and planning. One of the best options for saving smartly over the years as you wait for the ideal moment will be an ISA (Individuals Savings Account). The government will provide you with a savings boost if you are collecting and saving money for your first home. Once you are enrolled on a Help To Buy ISA you will get a 25% boost to your savings. That means that for every £200 you place into the ISA, the government will add £50. A vital cog for many first-time buyers, you can prepare for the important stage in confidence.

To discover how our team’s experience and advice can help you find the ideal Help To Buy scheme for you, speak with us today.


The purpose of this blog is to provide technical and generic guidance and should not be interpreted as a personal recommendation or advice.


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