In the journey towards home ownership, 20% of first-time buyers are not aware of the affordable home ownership schemes available to them, a study by Barratt Homes reveals. This gap in awareness underscores a significant hurdle for many who find the dream of owning a home just out of reach, highlighting the need for increased education and accessibility of these vital programs.
The research points to the Shared Ownership scheme as a prime example of underutilised support, with 58% of first-time buyers unaware of its existence, despite its notable online search presence. Shared Ownership allows individuals to buy a portion of a home and rent the remainder, offering a more accessible entry point into the property market for those unable to afford a full purchase outright.
Similarly, Lifetime ISAs, which attract the most interest with 74,000 monthly searches, are not fully capitalised on by over half of the first-time buyer demographic. These savings accounts come with a government bonus for first home purchases, yet the lack of awareness and utilisation remains a concern.
In response to this challenge, Barratt Homes has introduced a new Shared Ownership scheme in collaboration with Legal and General Affordable Homes, named Kickstart. This initiative aims to broaden the options available to prospective buyers, making the dream of home ownership more attainable by reducing the required deposit and mortgage size, thereby enabling a larger share purchase in their future home.
The importance of understanding each scheme's details before making a decision cannot be overstated. With various schemes offering different benefits, tailored to varied circumstances, prospective buyers are encouraged to seek advice from mortgage experts. This expert guidance can demystify the process and ensure that buyers choose the most suitable path to home ownership for their situation.
The existence of affordable home ownership schemes represents a critical lifeline for many first-time buyers. However, bridging the awareness gap is essential to ensure these programs reach and benefit the intended audience. Through education, advice, and exploring all available options, first-time buyers can navigate the path to home ownership with greater confidence and success.
Beyond these schemes, first-time buyers can also enhance their home-buying prospects in several ways:
Budget and Save: Effective budgeting and saving are foundational. By creating a detailed budget, first-time buyers can identify areas to cut back on expenses and increase their savings for a deposit.
Improve Credit Scores: A better credit score can lead to more favourable mortgage terms. Buyers should check their credit reports, correct any inaccuracies, and demonstrate responsible credit behaviour.
Research the Market: Understanding local property markets can help buyers identify areas where their budget might stretch further or where government schemes are particularly beneficial.
Consider Alternative Financing: Options such as family equity loans or gifts, where family members can contribute towards a deposit, might provide a viable route to home ownership.
Stay Informed: Keeping abreast of changes in government policies, interest rates, and market trends can help buyers make informed decisions.
In conclusion, while affordable home ownership schemes offer a lifeline to many first-time buyers, a significant portion remains unaware of these opportunities. Enhancing awareness and understanding of these schemes, alongside exploring other supportive measures, can significantly impact the ability of first-time buyers to achieve their dream of home ownership.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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