House prices in Chelmsford increased by almost one fifth in 2014 from the previous year, making the town an increasingly expensive place in which to buy property. But Chelmsford remains one of the more affordable London commuter towns, and is much cheaper than nearby Upminster or Hornchurch. But while you may get a better deal in Chelmsford than in Upminster, it can still be difficult to get on the property ladder in the town. Various schemes devised by the government could help. Here we outline the basics of each policy, from Help to Buy to shared equity.
Help to Buy
If you can only afford a small deposit to buy a house in Chelmsford then the government’s Help to Buy scheme could be of assistance. You need to have at least 5 percent of the property’s value in the form of a deposit.
Help to Buy offers two routes for home buyers that provide assistance with property purchase and securing a mortgage. The equity loans route is for people purchasing a new-build home. If you are buying a new-build then you can borrow up to 20 percent of the property cost at no interest, providing that you have a deposit of five percent. Mortgage guarantees help you buy an old or a new house. In this scheme the UK government will cover any of the losses sustained by the lender if you have problems paying back a mortgage. But keep in mind that you remain responsible for meeting all your repayments whether you get a mortgage with or without the Help to Buy scheme.
According to the mortgage advice Chelmsford mortgage brokers provide, shared ownership is where you buy a share of the house and you rent the rest of it – usually the landlord is a housing association or the council. The mortgage you get enables you to buy the share in the property and you pay a reduced rent on the rest with the option to buy a bigger share later up to the full value. The shared ownership schemes are targeted at first time buyers and most often new-builds. Ask for further details from a mortgage advisor Chelmsford offers.
Right to Buy
The Right to Buy scheme is aimed at tenants in the UK who are currently renting their house or flat from a council or local housing association. If you qualify you can apply to purchase the home you are living in at a discount from the regular price you would pay if the house were on the common market. The amount that the property is discounted by depends on where you are living and also on the type of property you are living in. In order to qualify you will normally need to have rented for three years before you can purchase the property but this three-year time period does not need to be consecutive.
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