What Mortgage
No Result
View All Result
what MORTGAGE Awards
  • Login
  • Register
Add Listing
  • Home
  • News
  • Buy-to-Let
  • Homeowner’s Hub
  • Equity Release
  • wM Awards
  • First-Time Buyer
  • Home
  • News
  • Buy-to-Let
  • Homeowner’s Hub
  • Equity Release
  • wM Awards
  • First-Time Buyer
No Result
View All Result
What Mortgage
No Result
View All Result
Home News First-time buyers

Call to simplify schemes to help first-time buyers get on the property ladder

by Kate Saines
November 18, 2019
Second steppers: Getting onto the ladder easier than climbing up
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

A survey by online mortgage broker, Trussle, found almost half of adults were unaware of schemes such as shared ownership and Help to Buy, which are available to enable people to purchase their first home.

While some 53% had heard of these schemes as many as 47% were completely unable to identify them.

In fact, nearly two thirds of people believed homeownership schemes were too complicated to get their heads around. Only 8% thought they were ‘too easy’ to understand.

Now Trussle has launched an online tool which allows potential homeowners to answer a series of questions to help them identify which schemes they may be eligible for.

Ishaan Malhi, CEO and founder of Trussle, said its research uncovered the ‘scale of misunderstanding’ around the existing housing schemes. The idea of the tool, he explained, was to help people try to navigate the schemes and find out which they would qualify for.

Related Articles

  • Base rate raised to 5.25%: Blow for borrowers
    August 3, 2023
  • The end of Help to Buy: Alternatives for first-time buyers
    November 8, 2022
  • First-time buyers: How to prepare for taking out a mortgage
    October 18, 2022
  • Buying a new build home – the perks and pitfalls
    October 10, 2022

He also revealed Trussle would soon be introducing teams of brokers to manage mortgage applications for those people using these schemes.

He added: “If these schemes were simplified, prospective buyers would be more likely to understand the options available to them, more quickly.

“We want all first-time buyers to feel properly supported on their home ownership journey and maintain any momentum in today’s already tough market.”

Homeownership schemes at a glance

[box style=”4″]

The Help to Buy ISA

What is it?

This scheme, which offers first-time buyers a free savings ‘top up’ to help boost any potential deposit for a home, closes to new applicants on 30 November.

Did you know…?

It’s only available to first-time buyers – but just two in five (43%) are aware of this, and only 17% know that you can qualify from 16 years old8.

[/box]

[box style=”4″]

Help to Buy Equity Loan

What is it?

As part of this scheme, would-be buyers only require a 5% cash deposit, with the Government offering (a time limited) interest-free loan worth up to 20% of the home’s price outside of London.

This means the would-be buyer needs just a 75% mortgage. To reflect London’s top-end property prices, the Government loans participants 40% of the home’s value interest-free for five years.

Did you know…?

Just under half the UK population know a 5% cash deposit is required, and crucially, fewer than a third are aware properties can cost as much as £600,000 in London, to reflect the capital’s higher property prices.

To date, more than 150,000 properties have been bought using this scheme. First-time buyers considering this scheme are warned they will start racking up interest on the equity loan debt after five years, at 1.75%.

[/box]

[box style=”4″]

Shared Ownership

What is it?

This option sees would-be homeowners buying a stake in a Shared Ownership home while paying rent and service charge on the part they don’t own.

Did you know…? 

For the Shared Ownership scheme, household income must be less than £90,000 within London and £80,000 outside of London. And yet, 68% of people think their household income must be less than £60,000 a year to qualify, regardless of location.

[/box]

Tags: help to buyshared ownershipTrussle
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Our recommeded tools

Mortgage Calculators

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

Mortgage Best Buys

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

Mortgage Match

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

Mortgage Search

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Related Articles

  • Base rate raised to 5.25%: Blow for borrowers
    August 3, 2023
  • The end of Help to Buy: Alternatives for first-time buyers
    November 8, 2022
  • First-time buyers: How to prepare for taking out a mortgage
    October 18, 2022
  • Buying a new build home – the perks and pitfalls
    October 10, 2022

Newsletter

Register for our free weekly newsletter for all the latest mortgage news, tips, and features.

Sign Up

Polls

Will the increase in stamp duty on 1 April 2025 make you less likely to buy a property?

View Results

Loading ... Loading ...
  • Polls Archive
  • Advertise
  • Media Information 2018
  • Contact Us
  • About us
  • Terms & Conditions
  • Essential Links
  • Privacy

what Mortgage, Metropolis International Group Ltd © 2025
Registered in England no. 02916515

[MBM_Form id="284841"]

Buying a property, moving home or re-mortgaging? Sign up to our newsletter and marketing emails, and we'll send all the latest mortgage news, top tips, expert advice and what MORTGAGE Awards updates straight to your inbox.

I am a...*
First Name*
Email*
First Name*
Last Name*
Email*
Company
Job Title
I would like to receive...
[MBM_Form id="284841"]

Buying a property, moving home or re-mortgaging? Sign up to our newsletter and marketing emails, and we'll send all the latest mortgage news, top tips, expert advice and what MORTGAGE Awards updates straight to your inbox.

I am a...*
First Name*
Email*
First Name*
Last Name*
Email*
Company
Job Title
I would like to receive...
No Result
View All Result
  • Home
  • News
  • Buy-to-Let
  • Homeowner’s Hub
  • Equity Release
  • wM Awards
  • First-Time Buyer

what Mortgage, Metropolis International Group Ltd © 2025
Registered in England no. 02916515