What are the advantages of the First Homes discount?
Given the soaring cost of buying a home of late, it might not sound like the best time to be a first time buyer. But with the government-backed First Homes discount, your dreams of homeownership might not be as distant as you think.
But what is First Homes, and how can it help you? Join us as we go through some of the biggest benefits of the First Homes scheme:
What is the First Homes discount scheme?
The First Homes discount is a government-backed scheme that helps first time buyers buy their first home at a discounted rate. A big helping hand for home-buyers unable to afford a home on the open market, you can enjoy a discount of 30% to 50% off a stunning new-build property. Best of all, you won’t be expected to pay back the difference at a later date!
Designed to make home-buying more affordable, First Homes saves you from the extortionate price tags of regular homes. There’s a cap on the maximum price you can pay using the discount, meaning your home won’t cost any more than £250,000 (or £420,000 in London).
Who is eligible for the First Homes scheme?
As the name suggests, First Homes is for people who have never owned a home before. If you are thinking of applying for the scheme, here are some of the key criteria you must meet:
- You must be at least 18 years old.
- Your household income must be no more than £80,000 (or £90,000 in London).
- You must be a first time buyer, meaning you have never owned another home in the UK or abroad.
- You must be able to get a mortgage for at least half the price of the home.
What are the benefits of the First Homes discount scheme?
The charms of the First Homes discount go far deeper than just saving you money – there are plenty of additional benefits that you might not have thought of. Here are some of the reasons why you should be getting excited about the First Homes discount:
A more affordable route to homeownership
Let’s start by stating the obvious – the biggest bonus of First Homes is that it saves you a lot of money on your first property. Whether you are looking to stop renting or you’re struggling to move out of your parent’s home, First Homes presents itself as a quick and more affordable next step. If you want to avoid spending ages saving up a big deposit, First Homes could be the way to do it.
Priority given to those who need it
When you buy a property on the market, there’s always the chance that you might get ‘gazumped’ at the last minute by a higher bidder. However, the First Homes scheme reduces competition by focusing on those who really need extra help to buy their first home. For example, if you are an essential worker, on a lower income, or already live in the area, you’re more likely to get first dibs on your dream home.
Find a home in your local area
Many aspiring home-buyers find that they need to venture outside of their living area (especially in London) to find a home at an affordable price. But with First Homes, you may be able to find an affordable property in an area that you know you love. With priority given to people who already live in the area, you can find a home at a great price, in a convenient location!
Pick from stylish new-build properties
Just because you are buying a discounted property, doesn’t mean you can’t enjoy the benefits of living in a high-quality home. The First Homes discount can get you a new-build apartment or house that is as stylish as it is highly functional. Alongside brand-new appliances, fixtures and a contemporary layout, you’ll have a blank slate to truly put a personal touch on your new home.
Looking to get on the property ladder? With Share to Buy, you can discover housing providers that offer First Homes, as well as other home-buying schemes including Shared Ownership and Deposit Unlock. Alternatively, you can get the keys to your future home using Share to Buy’s property portal.