Mortgage Subsidy Schemes

Some councils are increasingly aware of the difficulty for key public sector workers to be able to afford to buy houses.

The cost of housing in the South and South East is a major deterrent for people to move from north to the South. This has meant that there has often been a shortage of public sector workers (such as teachers, nurses, policeman e.t.c.)

Some Councils such as Woking offer to pay upto 50% of the difference between a mortgage in Woking and a mortgage in cheaper parts of the country. After 2 years of paying 50% of the difference, the council then agree to pay 25% of the difference for the third year. Details here at Woking Borough Council

Other councils such as Essex are able to offer mortgage subsidies for teachers. There is no general National policy for these council run schemes. The best thing to do is to contact your local council to check whether you may be able to benefit from it.

Open Market Home Buy

This is another Government mortgage scheme to try and help first time buyers afford to buy a house.

Open Market Home Buy is designed to run along existing mortgage loans. It is to give additional help in paying for the cost of the mortgage.

One option with Open Market Home buy is for the government to provide a loan equal to 17.5% of the house value. This loan is then paid back to the government over a period of time, in addition to the standard mortgage loan.

There is no interest, or charges that need to be paid to the government. However, if the house increases in value, this has to be shared with the government agency when it is sold.

Who can Apply for this Mortgage Subsidy Scheme?

• Key public sector workers
• Certain priority first time buyers
• Those on Council housing waiting lists
• existing council housing tenants

More on government mortgage schemes

Mortgages for first time buyers