First-time buyers have just weeks left to apply for government scheme that helps get onto property ladder
26.09.2022 - 17:17
/ manchestereveningnews.co.uk
First-time buyers are amongst those struggling to afford their own home amidst the cost of living crisis. According to Rightmove, the average monthly mortgage payment for new first-time buyers who are putting down a 10 per cent deposit has now reached £1,057.
Following the Bank of England’s latest interest rate rise of 0.5 per cent, and with the base rate now at 2.25 per cent, this mortgage figure could jump to as high as £1,114 per month for first-time buyers. Rightmove also say that a 10 per cent deposit on a first-time buyer home is now 57 per cent higher than it was 10 years ago, making it increasingly difficult for people to save the necessary deposit.
The government's recent announcement to cut stamp duty may provide some additional support for first-time homeowners. As part of the mini-budget announced on Friday (September 23), Kwasi Kwarteng revealed that threshold for first-time buyers will increase from £300,000 to £425,000 which means that any first-time homeowner buying a property under £425,000 will not have to pay any stamp duty tax.
READ MORE: Where I Live: "We transformed a £240,000 four-bed house in Bury - now it's our forever home"
First-time buyers could also massively benefit from another government scheme - but you must be quick as there is now just weeks left to apply.
The Help to Buy: Equity Loan scheme ends on March 31, 2021, but closes to new applications on October 31, 2022.
First-time buyers can get an equity loan towards the cost of buying a new-build home by borrowing between 5% and 20% of the property purchase price.
New homeowners need to be able to pay a minimum deposit of 5% of the property purchase price and arrange a repayment mortgage of at least 25% of the property purchase