In looking at tips to get on the property ladder One option is to part rent part buy. The most popular avenue for this scheme is the governments New Home Build Scheme which is targetted at certain areas of the country and at certain key workers.
Who Can Get Funding?
Household incomes must be less than £60,000 a year
- You must be a first time buyer or a previous home owner who can no longer afford it
- Or a housing association or council tenant
- Also you must be a ‘key worker’ (a key public sector worker, like a nurse or teacher)
Shared Ownership Schemes
If you are not eligible for the Governments New Home Build scheme, you could look into shared ownership mortgages. This involves buying part of the property and sharing ownership with someone else. If the bank holds the other share then you can buy them out over time. Shared ownership mortgages
Are Part Rent Part Buy Schemes A Good idea?
On the one hand they make buying a home realistic and enable you to get on the property ladder earlier. It means you will be able to benefit from rising house prices, but, equally it means you can suffer from falling house prices. With interest rates currently low, the cost of mortgage payments may be less than renting. But, if interest rates rose your mortgage payments will rise too, plus you will have to pay the additional rent.
Key Worker programme at Direct Gov UK
New Part Rent Part Buy scheme at Direct Gov
£60,000 a year is not a high requirement.It is sure that many people will gain the benefit from this government scheme.
Now this is a great thing, this really helps out first time buyers, wish that there was something in place like this in South Africa, as there are many young people that really battle to buy their own places, as they just can afford the bond repayments.
looking for information on part buy and part rent
I’m single mother,paying out money on rent to private landlord. I’m on less than £60,000 a year,working,get some housing benefit etc.. Would I be able to do this? As feel I will never get on ladder and will always be paying out dead money! If somebody knows please let me know if I would be able. Thanks