Help From The Government. Where?

sspeeedy

Hi there. Were wanting to buy our 1st house and cant because of the current market and banks wanting huge deposits. We have 10% at the moment.
Does anyone know where to find information about the help the government is giving to first time buyers to help with larger deposits.

Many thanks
Steve and maria

poppysarah

I didn't think they were giving money away ... well not just yet anyway.

You can fall into some of the scams - sorry schemes encouraging you to buy a small percentage of a whole house if you're feeling desperate to buy.

Premier_2

If you have 10% as a deposit, you should be able to get a mortgage for the remainder (sts)

Of course, the usual income mutiples will be applied, but they are there for your own protection. If you don't earn enough money, you probably wouldn't be able to afford the repayments.

Edit: you might struggle if you want to buy a new build.

Otherwise First Direct seem quite good. 0.99% above base for duration giving current rate of 5.49%. Will lend up to 90% (restricted to 75% on new builds)
Lending multiples: 3.5x higher plus 1.5x lower or 2.75 x combined
£399 fee

http://www.firstdirect.com/mortgages/lifetracker-indetail-incomemultiples.shtml

Running_Horse

Why would you want to do that instead of saving for a deposit, during which time prices are likely to fall substantially? What is the rush?

sspeeedy

Thanks for the reply's. We have a very good income and only want to borrow about 130k. I remember when the credit crunch started, gordon brown saying there would be help for 1st timers like us. Our rent is £800 which is more than a mortgage would be.

Running_Horse

Then saving a deposit will be no problem as you have a very good income.

granville_2

IMO...

- Keep saving & continue renting
- Download Firefox (http://www.mozilla.com),
- Install Property Bee (http://www.property-bee.com/)
- Track the house prices (on Rightmove) in the areas you wish to buy
- Wait for the property bubble to deflate and be ready to snap up something you really like with a decent deposit (and a favorable mortgage rate)

Don't expect the Government to help if you have a 10% deposit and a very good income.

Good luck.

sspeeedy

I've just had a thought. It depends what you call a good income. 50k between us is what I would call a good income. 10% is a small deposit. Its a difference between 15k or 45k as a lot of lenders want 30% now.

Sonofa

I'm not being funny, but you have, as you say, a good income of 50k and are looking to the Government to help you out with the deposit as you are FTB's.

You're hardly on the bones of your a rse now are you?

Do you really think you would fall into the bracket of people the Government are likely to help, if and when they do?

llh189

I would google your local Housing Association, they will probably manage you local scheme.

You are probably looking for the "my choice home buy" scheme in your local area.

This scheme expects you to take the max mortgage you can but will offer some money towards a deposit normally between 15% and 50%, you then pay back the interest on this loan at 1.74% per annum on a monthly basis.

You need to earn under 60K to qualify.

You must take the max mortgage you can, which is worked out at 3.75 times your joint salary less your debts. And you can buy a house with one more bedroom than you require.

so assuming no debts the figures would be as follows:

50 x 3 = 150k

to get a good mortgage deal normally 25% is required

so you will need to find a two bed house for 200k to qualify.

150k mortgage

50k from the HA

Rough calculations though!

hope this helps.

scousethife

Sonofa wrote: »

I'm not being funny, but you have, as you say, a good income of 50k and are looking to the Government to help you out with the deposit as you are FTB's.

You're hardly on the bones of your a rse now are you?

Do you really think you would fall into the bracket of people the Government are likely to help, if and when they do?

And further more its not government money they dont have any its tax payers money!

And I seriously object to helping out people when all it is acheiving is keeping house prices high.

If there was no help, no one could buy, so houses would have to drop to a point where they are affordable, so no help needed and I get to keep my hard earned cash.