UK households who earn less than £80,000 handed '50 per cent off' next home
First-time buyer schemes could give you up to 50 per cent discount on your ideal home. Households across the UK are eligible to receive up to 50 per cent off their first home - but may not even realise it - it is feared by experts.
Fiona Peake, personal finance and consumer expert at Ocean Finance, said: “Many UK residents may not realise they’re eligible for first-time buyer schemes, which can be a real game-changer for getting on the property ladder.
“Based on our [recent] survey, an estimated 50% of first-time buyers could be missing out on these government initiatives, simply because they’re unaware of them or assume they wouldn’t qualify.” The First Homes Scheme allows first-time buyers to pick up a new-build home built by a developer for 30% to 50% off the asking price.
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The First Homes scheme is eligible for first-time buyers across England who meet certain criteria. The government stipulates: "If you’re a first-time buyer, you may be able to buy a home for 30% to 50% less than its market value. The home must be your only or main residence."
"This offer is called the First Homes scheme," it says, adding: "The home can be a new home built by a developer or a home you buy through an estate agent, which someone else bought before through the scheme. The First Homes scheme is only available in England.
"In order to qualify, a buyer must be able to get a mortgage for at least half the price of the home. The new home also needs to cost less than £250,000 after the discount has been applied, or £420,000 in London. And the collective household income of the buyer, or buyers, purchasing the home must not exceed £80,000 a year before tax, or £90,000 if they are buying in London."
You must be 18 or older, be a first-time buyer, be able to get a mortgage for at least half the price of the home and not earn more than £80,000 a year before tax (£90,000 if the property is in London) - this is your income from the previous tax year.
If you’re buying with others you must all be first-time buyers, you must apply together, even if you’re not all getting a mortgage and your joint income cannot be more than £80,000 a year before tax (£90,000 if the property is in London).
Your joint income is the total of what you all earned in the previous tax year.