Government and other purchase schemes

There are several schemes available that have been set up to make buying a home more achievable if you are finding it difficult to save for a deposit.

Shared ownership

Shared ownership schemes give buyers the opportunity to buy part of the property from the owner, and pay a reduced rent on whatever is outstanding.

Under this scheme, the buyer will usually buy between 25% and 75% of the property, leaving the landlord, usually the council or a housing association, to own and collect rent on the rest. The owner’s monthly payment will partly cover this rent and partly go towards the mortgage taken out to buy their share in the property.

Over time, the buyer can purchase a larger share of the property from the landlord until they own it outright. At this point they will continue to pay off the mortgage, but will no longer pay any rent.

Part exchange

If you already own a home, but are looking to purchase a new build property you may be able to take advantage of a part exchange incentive that some developers offer. This will appeal to many people looking to move home, as it means you can buy a property even if you have not yet sold your existing one.

In these cases, the developer becomes the buyer of your home, for which they pay a market-related price. The price should be based on independent valuations. The developer usually then sells your old property at a later date.