Q. If our residents have a deposit saved up and aren’t eligible for London Living Rent or Shared Ownership, what other options do they have?
A. Help to Buy is an alternative to Shared Ownership. Help to Buy is a Government scheme designed to make buying a home more affordable for first-time buyers. With a Help to Buy: Equity Loan, the Government will lend first-time buyers in London up to 40% of the price of the property they want to purchase. There is no interest to pay on the loan for the first five years.
Q. And who do residents speak to if they need advice on mortgages or their buying options?
A. If you want to learn more about your buying options, the benefits of Shared Ownership, or are interested in purchasing a home, Red Loft are more than happy to help. Red Loft can recommend an independent financial advisor who can talk through your mortgage options and determine what is affordable for you. You can call Red Loft on 0207 539 3745 or email [email protected].
Q. What do prospective buyers need to consider when house shopping? Are there any extra costs involved?
A. When buying a Shared Ownership home, you will need to put down a deposit. This is the amount you pay towards the cost of the share you are buying at the time of purchase. The amount required for a deposit will vary from property to property, but the typical Shared Ownership deposit is 5% or 10% of the share you are purchasing. We also recommend having between £3,000 and £5,000 available to cover all the moving fees and costs, including the solicitors and broker fees.
Q. Thanks, Lauren. Any other tips for our residents?
A. To help the mortgage process go as quickly as possible, getting your supporting documentation ready in advance of your application is a good idea.
If you’d like to find out more, please visit our Information Page, where you can read more about each scheme and your eligibility.
