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Government Schemes

Do you need help from a special government backed scheme?

Options like Right to Buy, Shared Ownership and the Mortgage Guarantee Scheme often come with restrictive lending criteria and fewer lenders. At IMA we can pick the right option for you

With high property prices and higher rental costs it is becoming difficult to save for a deposit.  There are several schemes available to help get your foot on the ladder.  Shared Ownership and Right to Buy are the current most popular options but these will change with new deals like Starter Homes possibly coming out later next year.
These schemes are all limited to specific properties typically new homes or recently built properties. However they can benefit you by only needing a small deposit, 5% with a lot of lenders, to secure your property.
New build purchases can feel more pressurised due to the selling requesting that exchange of contracts takes place before 28 days have passed.
Shared Ownership
As it suggests, with this scheme you purchase a percentage of the property from either the current private owner or a housing association. The share is often between 25%-75% with rent paid to the housing association for the remaining share. You can usually purchase with a 5% upwards deposit however there are affordability assessments that need to be passed not only with the mortgage lender but the housing association too.
Right to Buy
If you are currently renting a local authority owned property you might be able to apply for the ‘right to buy’ this property from the council. You could be eligible for a discount against the current market value of up to 40%, this discount would then act as your personal deposit with most mortgage lenders. You will then only need to cover your legal costs and potential valuation fee.

Mortgage Guarantee Scheme
This will allow you to buy a home with a 5% deposit (usually second hand homes). The guarantee helps give the lenders confidence with low deposit borrowing. In the event of a repossession  the government compensates mortgage lenders for a portion of net losses down to 80% of the property value.  This is trick to use on "New Builds" and flats and a lot of lenders require larger deposits for this.

Deposit Unlock
A new mortgage scheme that was created by the 
Home Builders Federation and backed by the government.  It will help first time buyers or current homeowners secure a mortgage with just a 5% deposit (£750,000 maximum).  This is for new-build homes from participating home builders. You will not be able to own another property post completion though, so not suitable for people with Buy To Lets or Second Homes. 

Kind of similar to the Mortgage Guarantee Scheme, repossed properties have their mortgages insured, but this time by the builder. 

Please feel free to read our "Helping Hands" document in this link, which is our guide to buying, remortgaging and protecting your home

Your home may be repossessed if you do not keep up repayments on your mortgage.

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