Alternatives to Help to Buy
With the Help to Buy: ISA closing on 30 November 2019, you may want to consider other options available to you.
Joint mortgage with your parents
If your parents are unable to ‘gift’ you money to help you buy your first property, you could consider a joint mortgage. This will combine your income with your parent’s income, which typically allows you to afford a higher-value property.
Starter Homes Initiative
The Government announced the Starter Homes Initiative scheme back in December 2014. They have pledged to build hundreds of new properties that will be sold with a minimum discount of 20% to first-time buyers. The scheme is yet to start but planning is well underway.
Buy with a friend or sibling
If you’d rather not have a joint mortgage with your parents, you could buy with a friend or sibling. However, before doing so, ask the following questions:
- Do you both have a reliable income?
- Can you both meet monthly payments?
- Do you both have funds set aside for unexpected costs such as repairs?
- What will you do if one of you wants to sell?
Providing you have discussed the above and are happy with the answers, you’re good to go.
Shared ownership does not mean you have to live with another person. It means you buy and own a percentage of the property and pay rent on the rest of it. It’s a great way to get on the property ladder if your family or friends are unable to help.
If none of the above work for you, you may just want to sit tight and save a large deposit so that you can purchase an affordable home with minimal monthly repayments.
There are many sites for advice on saving for a deposit, mortgage affordability and more. Try using an online mortgage calculator to get an idea of repayments and start planning your future.