Weight up the Help to buy scheme

Weighing Up the Help to Buy Scheme

Weighing Up the Help to Buy Scheme

The Help to Buy Scheme was introduced to assist first time buyers with purchasing their own home, primarily because of the drastic increases in property prices, which has meant that even those who have saved hard for a deposit, are unable to stump up enough cash to get their foot on the ladder.

Whilst many see the Help to Buy Scheme as an excellent and more affordable way to own a home, many believe that the scheme is inconsistent. Whether you think it is a good idea or not, there are pros and cons to both sides of the argument. It is essential to consult a help to buy solicitor, who can advise whether the scheme is suited to you and your current situation.

One of the attractions of the scheme is that despite requiring a deposit, it is often much smaller at only 5% of the purchase price. However, another pro is that the first five years of the loan are interest free, the remaining terms promising to be competitive. Whilst it may seem inexpensive initially, it will become increasingly expensive – planning long term and being aware of future costs is vitally important.  You are also restricted to certain lenders which takes away an element of choice.

The terms can also change, which could include fees – this is why you need to find the best conveyancer in Birmingham, particularly if you have decided that the scheme is right for you. It is also worth remembering that the loan isn’t fixed, which means it will fluctuate throughout its term. This is good if interest rates are low, as they currently are, however, if rises in interest start to become significant, this could pose a problem in terms of affordability.

It is also worth noting that choices are limited within the scheme, in terms of the type of house you can purchase, which is restricted to new builds.  This won’t suit someone who is dreaming of a period property, however it does enable you to get on the housing ladder and work your way up to your dream home. A property lawyer in Birmingham can assist with the legal jargon and nuances in the event that you do decide to apply for the scheme. The scheme is available to new build properties under £600,000.

One other risk is negative equity – whilst this isn’t common, it is a risk and therefore it is essential you consult a help to buy Solicitor if you find something that you have your heart set on.

The scheme has worked well for many people and has enabled them to get a foot on the property ladder with a small deposit. It isn’t perfect, but it is worth considering.

For more advice about the Help to Buy scheme,or if you’re looking to buy a property please contact HS Lawyers now. HS Lawyers have been established for over 10 years with offices and licensed conveyancers in West Bromwich,  Wolverhampton and Birmingham. If you are looking for a dependent, reliable , professional or best conveyancer in Birmingham, Wolverhampton , Peterborough you can visit our local branches where one of our expert advisors will be happy to assist.