First Home scheme: Smaller deposit for first-time buyer

The government offers a scheme that helps first buyers buy their homes at least 30% or 50% less than its market value. The government offers this first home scheme to those with this home as their main residence. This scheme is applicable only in the United Kingdom.

The government launched the scheme to help people who can not afford expensive houses. The government gives them a 30% or 50% discount on the actual value. 

This scheme helps them to buy homes on small deposits. Sometimes, this discount may be above 50% to help buyers buy their main residence.

These schemes work for newly built homes or those brought before through schemes. This scheme applies to all houses, flats and homes, but they are no different from others in their development. A 30% discount is present at first homes property. 

Local authorities also offer discounts to make properties more affordable for workers and first-time buyers. They offer 40% or higher discounts on properties in their local areas to make it easy and affordable for them. If £400,000 is the property value of the first home scheme, the discounted price of this property is £310,000, a saving of  £90,000.

The applied percentage of discount is fixed for its lifetime. You must buy or sell your property at the same price.

The government offers this scheme only to the first home buyers in England. Here are the criteria for eligibility to this scheme:

1. First time buyers

First-time buyer only means you did not own any property previously. You buy the property for the first time. You did not own property in the UK or abroad. This home is your main and first residence, not the second one.

2. Income limits

For the first home scheme, your income should be less than £80,000. Whether buying individually or combined, you must have an income of less than £80,000. There are £90,000 higher thresholds that will be applied if you’re buying in London.

3. Mortgage 

A mortgage is necessary for the 50% discounted property; you will badly need this for the first home scheme. You will not qualify for the first home without a mortgage, whether you have enough money to buy the first home.

4. Local eligibility rules 

Locally, councils have the power to apply eligibility criteria. If you are divorced, working in the Armed Forces, and a veteran who left the service within the past 5 five years, these local rules do not apply to you.

For finding a property you will have to do some research locally. There are no proper websites where properties are listed. So you have to keep an eye on the new properties in your area. It would help if you also kept in touch with a state agent for this.

First, tell your developer you want to buy a property through this scheme. Firstly, they will check your criteria to see if you’re eligible. If you’re eligible, they will help you complete your application. Then, they will submit your application to the local council.

You must pay the reservation fee to buy a new building property. In case of an unsuccessful application, you will get your reservation fee back. Give your personal information and also information about the property you want to buy. You also need to give a mortgage, photo ID, proof of the address and estimation cost if you’re building a property. FHS will assess your application and documents.

 They will give you an FHA eligibility certificate if you are eligible for the scheme.  Get your mortgage approval from your lending partner. Upload your mortgage letter to the website and provide all the details. Then, after several procedures, they will give you a discount on the property.

If your application is approved, follow all these steps:

• Find a conveyancer
• Getting a mortgage
• Follow the local council regulations and rules
• Complete your legal documents 

When you get your mortgage offer, the local council makes sure that the request submitted by your conveyancer is legal and tells you about what they have decided.

• You can sell your first home property at any time. You must try to sell your property to another first buyer. The first property must sell at a discounted price. 

• If your property is on sale and you did not find any first buyer, you can sell your property for a total value in the market.

This scheme helps first buyers in buying their property. Some main benefits are given below:

1. Discount You buy a new home at a discount of 30% in your area.
2. Smaller deposit You can buy your home at a smaller deposit.
3. Stamp duty You can pay stamp duty at the discounted price, not the market value.

• This scheme needs research; there isn’t isn’t specific where you can find information about the new property they built.
• First home property sold to other new buyers at the same discounted price gives a lesser profit margin to the first buyer. 

This scheme is a great initiative by the government for first-time buyers. If you for other than this scheme, are given below:

1. Right to buy

If you want to purchase your property at a discounted price, choose the right-to-buy scheme. This scheme is for council tenants in England.

2. Shared ownership

If you don’t donut holes, you have the option to buy a stake rather than a house. You can buy this through shared ownership.

3. Forces help to buy 

If you are from the armed forces and want to own your house, you can apply for force help to buy.

4. Lifetime ISA 

A bonus that adds to your savings and helps you to save a deposit. The government also added a bonus of up to £1,000 a year.

The first home scheme is a great initiative for buyers with smaller deposits for their main residence at 30% discounts on the market value. This scheme benefits those who might not afford expensive homes so that they can get their main residence through this.