Shared Ownership and NewBuy Schemes on the Increase

According to figures obtained by Lloyds TSB, nearly half of all first time house buyers are interested to become involved in a shared equity or a shared ownership scheme, just so they can get on the housing ladder. A quarter of those questioned saw it as the only option to buy a property and the only way they could make the mortgage repayments within their reach or the only way they could afford to live in a particular area. Shared ownership is a good solution for those looking to get on the property ladder for the first time, especially if looking to buy in expensive areas like London, where prices are still rising and property prices are well out of the reach of most buyers. Shared ownership schemes are not just for first time buyers and young couples but available to hose already on the housing ladder and hoping to upgrade to a larger family home. Many developers are offering these types of schemes. Those looking to get involved in a shared ownership scheme find a housing developer that offers this option, choose an apartment or house in one of the participating developments and then buy the share you can afford. You can buy as little as 35% and can increase your ownership share at any time you wish and can afford to do so. You then pay the Government a subsidised rent on the share you do not own. Usually the small mortgage repayments and the subsidised rent together are lower than the rent would be for a similar property if rented privately. There are certain restrictions on who can apply for the shared ownership scheme. In order to qualify the total income of the household applying must be less than £64,300 a year if you are buying a one or two bedroom apartment or £77,200 if you are buying a three bedroom apartment. You should also make sure you have at least £3,500 in savings to cover legal and moving costs. Whilst the shared ownership scheme is popular in the more expensive areas in the UK, in the North East the Government backed NewBuy guarantee scheme has proved particularly popular. This scheme allows people to buy a property with only a 5% deposit. The NewBuy scheme was developed in conjunction between the Council of Mortgage Lenders and the Home Builders Federation and offers 95% mortgages on new-build properties worth up to £500,000 for both existing homeowners and first time buyers alike. There has been a steady rise in the number of people applying and buying through the NewBuy scheme which is good news for the housing market.House buyers in the North have also seen the cost of mortgages decrease slightly as more lenders are allowed access to the Government's Funding for Lending Scheme and thus these lower costings can be passed on to the customers. The UK housing market remains in difficulties and there are still definite challenges for new house buyers with the availability of mortgages remaining the key problematic area. But it is positive news that the uptake of schemes such as the Government NewBuy scheme and Shared ownership schemes are on the increase. For anyone interested in new homes for sale either in the UK or new homes in Scotland and would like more information on which developers offer shared ownership schemes then visit the developers' websites to see what incentives and schemes are available.