Other housing schemes
You may also wish to consider alternative housing schemes provided by housing associations and other housing providers. These include:
Shared ownership
You purchase a new or existing home from a housing association. You purchase the maximum share in the property that you can afford with a minimum requirement of 25% and pay rent on the remaining share (often referred to as part buy part rent). Homes are either brand new or being sold by existing shared owners. The rent on the outstanding share is usually set a maximum of 3% on the value of that share when the home is first sold. Rent levels on resale homes can be higher
Rent to Save
You rent for a fixed period, up to five years, at up to 80% of the equivalent market rent for that property, with a fixed rate of inflation. A savings plan is put into place to help you save for a deposit. At any point during the tenancy you can purchase on shared ownership or shared equity terms. If you are no longer wish or are able to buy you can end your tenancy on the terms of your agreement.
Help to Buy
You purchase a minimum of 80% of the property with a mortgage and a deposit. You need to be able to raise a minimum deposit equivalent to 5% of the value of the property. No fee will be charged on the loan for the first five years. After that you will pay a fee on each of the equity loans of 1.75%, rising annually by the increase in the Retail Price Index (RPI) plus 1%
NewBuy
The NewBuy or Help to Buy scheme is designed to help overcome the deposit gap for new home buyers. It is aimed at first-time buyers and those who already own a home who only have funds for a 5%-10% deposit on the home they wish to buy in England. The lenders participating in the scheme will provide a 90%-95% loan-to-value mortgage for buyers meeting their qualifying criteria.
To find out more, please visit the FIRST STEPS website
FIRST STEPS is the official intermediate housing programme from the Mayor of London helping low and modest income Londoners to buy or rent at a price they can afford. By registering your details and property preferences on the SharetoBuy.com portal you can you can find all the FIRST STEPS properties in one place, search for a home that meets your needs and contact the housing provider.
A number of housing associations have also teamed up to offer a similar service. Homematch is London's new one-stop shop service for people looking to buy or rent an affordable home from trusted housing providers. One application form gives access to homes all across London. For more information visit the Homematch website.