Double help for first time buyers
Liz Benson head of sales at Sentinel Housing Association explains;
‘People saving for a deposit on their first home are finding the goal posts moving further away as house prices continue to rise. New figures from Rightmove predict average UK house prices to push well over £300,000 by the end of 2016. Over the last year they’ve risen by £20,000, and this latest prediction could see them rocket by another £17,000 by the end of 2017.
There’s no denying it’s tough out there for first time buyers but now they have the chance to use two support options together. The Government’s new Save to Buy ISA can be used to buy a shared ownership home. This is the best support I’ve seen in the 10 years I’ve been working in affordable home ownership its really positive news.’
The Government’s offering first time buyers the chance to, save money into a Help to Buy ISA, to which they’ll boost savings by 25%. So, for every £200 saved, they’ll give a bonus of £50, going up to a maximum of £3000. If two people are buying together they can both open an ISA meaning they’ll get up to £6000. This deposit can then be used to buy a shared ownership home which only requires a deposit on the percentage of the home being bought.
Open market purchase - £150,000 price - 5%* mortgage deposit requires savings of = £7,500
Shared Ownership purchase - £60,000 (40% share price) 5%* mortgage deposit requires savings of = £3,000
Sentinel’s invested heavily in building new shared ownership homes to help people get a foot on the property ladder and realise their home ownership dreams. Over the last 5 year’s they’ve built 588 homes to sell through shared ownership, and plan to build another 153 over the next year.
Find out more about the Government’s new Save to Buy ISA
Visit Sentinel Housing’s home ownership website