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UK Government's Financial Help For FTBs
UK Government’s Financial Help For FTBs
FTBs or First Time Buyers are those property buyers who have not owned any property previously. First time buyers are exposed to stamp duties, solicitors and their fee, mortgage and other aspects of property buying for the first time. Scottish National Party was the first party in UK to propose a grant of £ 2,000 for FTBs in the 2007 elections. Since then, Government of UK has introduced many schemes for FTBs in UK so that they can won a property at lesser costly and rather easily.
Here Are Few Most Popular FTBs Schemes Offered By The Government Of UK
Help To Buy
Those people who have around 5 percent deposit money of the net-house price they wish to own can avail the benefits of this scheme. The loans are available in the form of Equity Loans and Mortgage Guarantees.
Equity Loans are only available to those FTBs who wish to buy a new home that has been built recently. If an FTB has 5% deposit then he/she can borrow 20% of the home’s price from government. The loan is totally interest free.
Mortgage Guarantees are offered by the government to FTBs for both old as well as new built properties. The government will cover for your losses if you fall in an adverse financial condition. Still the FTB is required to make full payments in due time. Both these schemes have monetary limits which a FTB cannot cross.
Right To Buy
Right To Buy scheme is for the tenants of UK. If the tenant possesses certain qualifications, then he can purchase the house at a discounted price tag. The type of property rented is one major deciding factor for availing the discount. Tenants are required to be living in a rented property belonging to public sector properties like properties of Housing Associations and Local Councils for a period of 5 years or more in many cases. The 5 years of tenancy may or may not be at a stretch and can be variable also.
Right To Acquire
Tenants who do not qualify for Right To Buy have the option of one another scheme by the name Right To Acquire. The scheme has slightly lower amounts of discounts for FTBs.
The scheme enables a FTB to buy some share of home from the landlord. The landlord in many cases is a Housing Association or a Council. The remaining share is rentable. A mortgage is required for paying the share and its amount must be somewhere between 1 quarter to 3 quarters of the home value. The FTB then has to pay lower amount of rent on the share he/she does not owns. Later the FTB can buy the whole property.
This government scheme is only for those residents and citizens of UK who live in Northern Ireland. It applies to old as well as new homes. The FTB can buy 50 to 90 percent of the property (called Stair Casing) and can later buy the other remaining home area as well. The rent of home portion not bought has to be paid.