THOUSANDS more first-time buyers can now apply for a little known-scheme giving them thousands of pounds in free cash for a deposit.
Getting on the property ladder can be pretty difficult, particularly with rising rents making it tougher to save for a deposit.
But there are schemes out there to help first-time buyers struggling to get a place of their own.
Housebuilders Barratt and David Wilson Homes has extended its key worker deposit contribution scheme to include thousands more workers.
It will now be available to 60,000 foster carers and 37,000 employees and volunteers of the Royal National Lifeboat Institution (RNLI).
People working in the NHS, education, the police force and the fire service are all already eligible.
The scheme originally launched in 2022, and so far, 2,000 key workers have taken advantage of it.
Through the scheme, key workers can get £1,000 as a deposit contribution for every £20,000 of a home’s purchase price.
For example, on a home costing £325,000, key workers would qualify for a contribution of £16,250.
This figure could of course be higher or lower depending on the home’s purchase price.
There is no price limit on the property you could buy, as long as you’re eligible for the scheme.
It is available on all new Barratt and David Wilson homes and you can find their latest developments using the “find a home” tool on their respective websites.
You can be eligible no matter what you earn, you just just need to be a key worker.
This could include:
- Payslips from the three months prior to reservation
- Blue Light Card
- Proof of trained status
Steve Mariner, sales and marketing director at Barratt Homes and David Wilson Homes, said: “While mortgage rates are starting to come down, many buyers are still struggling to get into a home that fits with their lifestyle.
“We’re now extending the scheme to include those who do outstanding and selfless work both with the RNLI and foster care services.”
Below is the full list of who is eligible for the key worker deposit scheme:
- NHS
- Education
- Police Force
- Fire Service
- Ministry of Defence
- Environmental Service
- National Highways, Transport Scotland & Transport for Wales;
- Probation Service
- Local Authority
- Prison Service
- Royal National Lifeboat Institution (RNLI)
- Foster Carers
How to save for your first home
HAVE you ever wondered how first-time buyers manage to go from savers to homeowners?
Getting a foot on the property ladder might seem like a daunting task, but The Sun’s My First Home feature allows you to find out exactly what it takes to finally get the keys to your own place.
Leanne Gem managed to buy her £456,000 four-bed house with an “underrated scheme”.
Karis Jacobs and her husband George used the 50/50 method to buy their first home just two years after losing their jobs.
Parents Chae and Cem used a “DIY Help to Buy scheme” to buy their £466,000 first home.
Anupam and his wife Shrabanti lost £6,000 free cash when buying their first home – here’s how you can avoid it.
Nick Mendes, mortgage technical manager at broker John Charcol, said: “The Key Worker Deposit Contribution Scheme by Barratt Homes is a commendable initiative aimed at easing the path to homeownership for essential workers in the UK.
“While it offers significant financial benefits and acknowledges the contributions of key workers, it also comes with limitations regarding eligibility and the type of property.
“Potential buyers should carefully consider these factors to determine if the scheme aligns with their home-buying needs and circumstances.”
Developers will often offer incentives to buyers looking to bag a new-build property to get a deal over the line.
Property developer Fairview has launched Save to Buy to help those who otherwise could not afford to buy.
The scheme allows first-time buyers to reserve a plot and move in to the new home with just a 1% deposit.
Miller Homes offers a First Timer Package for new buyers only.
You can choose between Miller paying your 5% deposit or giving you £15,000 cashback when you move into your new home.
Housebuilder Taylor Wimpey has several schemes designed to get first-time buyers on the property ladder too. We explain them all here.
What other first-time buyer schemes are available?
The First Homes scheme was launched in 2021 and means prospective first-time buyers in England can get homes at 30% and 50% discounted rates compared to market price.
But if the homeowner decides to sell the property down the line, the discount on the new value will be made available to any future buyer too.
As well as being first-time buyers, you also have to be aged 18 or above to qualify.
Each council has its own criteria for the scheme so make sure that you check with your local one.
If you don’t know who your local council is, you can find it using this handy tool.
Another option is the Right to Buy scheme which is a government initiative that lets council house tenants buy the property the rent.
These homes are offered at a reduced price to help renters get on the ladder.
You get a 35% discount on your council home if you’ve been a public sector tenant for between three to five years.
After five years, the discount increases by 1% for each extra year you’ve been a public sector tenant.
There are also other schemes such as Right to Acquire which works in a similar way to Right to Buy, and Shared Ownership which is also known as part-buy, part-rent.
To get more information about these schemes and five other ways you can get discounts on your home, we spoke to mortgage expert David Hollingworth.
How do you find the best mortgage deals?
WE explain how to ensure you get the best deal on your mortgage or remortgage:
Websites such as MoneySuperMarket and Moneyfacts have mortgage sections so you can compare costs. All the banks and building societies will have their offers available on their sites too.
If you’re getting confused by all the deals on the market, it might be worth you speaking to a mortgage broker, which will help find the best mortgage for you.
A broker will typically cost between £300 and £400 but could help you save thousands over the course of your mortgage.
You’ll also have to decide if you want a fixed-deal where the interest you’re charged is the same for the length of the deal or a variable mortgage, where the amount you pay can change depending on the Bank of England Base Rate.
Remember, that you’ll have to pass the lender’s strict eligibility criteria too, which will include affordability checks, and looking at your credit file.
You may also need to provide documents such as utility bills, proof of benefits, your last three month’s payslips, passports and bank statement.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories