Help to buy scheme

Are you thinking about buying your own home but not sure what you can afford?

The Help to Buy Scheme is available for both first time buyers and anyone looking to move up the housing ladder. The government-backed scheme could make it possible for you to purchase your own  property with only a 5% deposit.

So how does it work?

You buy a 100% of a brand new home, from a registered developer, but you only need a mortgage for 80% of the purchase price, initially. The remaining 20% is covered by an equity loan from the government. The loan is interest free for the first five years, and repayments will start in year six. The 80% you will need to fund through a conventional mortgage, but lenders usually require at least a 5% deposit, so your mortgage will be 75% of the purchase price.

The equity loan counts as a second charge on the property. The total amount you pay back relates to the property’s market value at the time of repayment. So, if the price of your home goes up, the amount you pay will go up, but if house prices fall, the amount you will pay goes down. You must pay back your equity loan within 25 years, or if you move, whichever is sooner.

Help To Buy Shared Ownership Scheme

Shared ownership is another way of making home ownership more affordable. This gives people the chance to buy a percentage of a house which you then pay back with a mortgage, or you can buy out right, and on the remaining percentage, you pay a subsidised rent.

The percentage you can buy depends on the property. However it usually ranges between 25% to 75%. The larger percentage you purchase, the less rent you will pay. Most shared ownership schemes also offer staircasing options where you can increase your percentage, up to 100% ownership if you want to.

This option is suitable for those who maybe haven’t got the means to raise a large deposit, or who have some savings, but cannot commit to long term mortgage repayments.

Shared ownership properties are usually offered through housing associations. In Tamworth. Bromford, Waterloo and Midland Heart all have shared ownership properties . You can also search for shared ownership properties on property website Rightmove.

For more information or to register for either of these schemes visit:

Alternatively contact our Housing Solutions Team on 01827 709709. Email:

Section 106 properties

If the property you are purchasing is part of a section 106 agreement - which is when affordable housing is part of a housing development - it means there are certain conditions attached to the property. The homeowner and the estate agent should advise you of this. For more information and advice on whether you satisfy the conditions please contact: