Click here to learn more about affordability for the Help to Buy schemes
Whether you're looking to buy or rent you'll need some money coming in and savings in order to be able to proceed with the Help to Buy Schemes. Read on to get an idea of the type of things that you'll need to consider.
1) If you're looking to rent a Rent to Buy or Intermediate Rent property you will need to have savings to cover one month's rent up front and another month's rent as a deposit. For example, if the property's monthly rent is £600 then you will normally need £1,200 in savings, plus consideration for any moving costs such as removal companies.
2) When buying a Shared Ownership home the deposit you'll need is based on the share purchased, usually around 5 - 10% as a minimum. You'll also need to have approximately £2,500 on top of this to cover any solicitor fees and mortgage arrangement costs. Your income will need to be able to cover the cost of the mortgage and the rent of the share owned by your Housing Association. A full financial assessment will be carried out to ensure the home is affordable for you not only short term, but in the long term too.
3) With Help to Buy Equity Loan you'll need to consider the savings needed to pay the minimum 5% deposit based on 100% full market value, as well as stamp duty and other associated costs. Similar to Shared Ownership you'll will need to pay for mortgage arrangement and legal fees. Aside from your mortgage payments you will have to bear in mind the cost of repaying the loan too.
4) Aside from your monthly rent/mortgage payments there are other outgoings you will have to consider. Keep in mind things like Council Tax, contents insurance and your TV licence. These are all things you'll need to take into consideration when working out what you can afford. We also have a Mortgage Calculator on our website that can give you an idea of what you may be able to afford for either Shared Ownership or the Equity Loan.
5) If you'd like some more in-depth financial advice you should speak to a member of our panel of Independent Financial Advisors. They can give you advice over the phone or you can arrange to meet with them in person and work out what is the best choice for you.
Call 0800 456 11 88