Are you looking to buy your first home but struggling to get on the property ladder? First-time buyers face a tough time getting their finances in the right shape to be able to afford a house or a flat, particularly in places like Essex which see high demand for homes and high prices. One government scheme that may make a difference to buyers in Essex is the Starter Homes initiative.
How Does the Scheme Work?
The Starter Homes scheme involves new build properties, according to www.beresfordsgroup.co.uk. Developers build homes especially for the Starter Homes programme and these homes will then only be available for first-time buyers. Through the scheme, the new properties will be sold at a discount of upwards of 20 percent of the going rate. The current scheme makes 200,000 homes available up until 2020. There is a cap on the highest value of homes sold under the scheme, which will be £450,000 in London and £250,000 outside London.
Qualification Criteria for Starter Homes
The scheme is open to anyone under the age of 40 who is a first-time buyer – they have never owned property before. If you meet this criteria then you will, of course, still need to have the money available to buy the home at the discounted price – which may still be quite high, especially if you are buying in Essex. The website www.beresfordsgroup.co.uk offers a selection of different properties that are currently on the market; check sites like this to see how much you would have to spend to buy an average property in different areas of Essex.
Rural and Urban Starter Homes
In many rural parts of Essex, Starter Homes could be the answer for first-time buyers that find themselves priced out of the area. The government plans to increase the number of homes in this scheme that are available in the countryside.
Mortgages for First-Time Buyers
You will be able to get a mortgage on the houses built under the scheme, providing of course you meet the mortgage lender’s criteria. The decision to grant a mortgage depends on your income, your other earnings, your outgoings and your credit record so whether you will be able to take advantage of the scheme does depend on these factors.
The homes in the programme are designed to be high quality, although it is not clear how you will be able to tell if the discount on them is real, as they are new builds. But it may take some time before the houses are available fully under this Starter Homes scheme. In the meantime, if you are looking to buy your first home in Essex, make sure you investigate all the options. Look into the state of your finances to find out how much you can borrow, and check your credit history to find any flaws that may stop you getting a mortgage. Then you will be ready to move and invest in Essex property, whether it is through the Starter Homes scheme or on your own initiative.