Looking for a home ownership scheme? Try our new tool to find one that suits you best
21st November 2019
If you’re a first-time buyer, you probably need as much help as possible to get on the property ladder, given the rise in house prices compared to wages.
One way to get a leg-up is a home ownership scheme. There are lots of them - 13 in fact in England, Scotland, Wales, and Northern Ireland. Some even give you money to help you buy a home.
But worryingly, many people don’t know about them.
We asked more than 2,000 people whether they were aware of any governmental or non-governmental home ownership schemes aimed at helping first-time buyers get on the housing ladder.
Almost half - 47% - said they weren’t aware of any.¹
Just one in five were able to correctly name at least one of the three main schemes.²
And of those who had heard of a home ownership scheme, the majority thought they were too complicated.³
The easy way to find a home ownership scheme to suit you
As so many people are unaware of home ownership schemes we’ve created a tool to help you decide which one’s best for you.
The first of its kind, it features 13 schemes in England, Scotland, Wales, and Northern Ireland.
You’ll know which scheme you could be eligible for in a matter of seconds. All you have to do is answer ‘yes’ or ‘no’ to a few quick questions, such as whether you’ve got a 5% deposit, and you’ll see all your options.
And there’s a detailed guide for each scheme to help you make up your mind about which one might suit you.
How home ownership schemes can help
Given all the confusion out there, here’s a quick explainer for the three most popular home ownership schemes.
Help to Buy ISA
This scheme aims to help first-time buyers save a deposit for a home. The government adds 25% to whatever you save, up to £12,000.
So if you save the maximum of £12,000 over five years, the government will add an extra £3,000.
The Help to Buy ISA closes to new applicants on 30th November 2019, so move fast if you want one.
Help to Buy Equity Loan
This scheme is available to first-time buyers as well as to homeowners looking to move.
You’ll need a 5% cash deposit and the home you want to buy must be newly built. The property can cost up to £600,000 in London, £400,000 in the rest of England and Northern Ireland, £300,000 in Wales, and £200,000 in Scotland.
If you’re eligible, the government will give you a loan worth up to 40% of the price if it’s inside London and 20% if it’s outside.
A Help to Buy Equity Loan is interest-free for the first five years.
With this option, you buy a share in a home, and pay rent on the rest.
You can buy between 25% and 75% of the home, with the option to buy a bigger share at a later date.
You may be eligible for Shared Ownership if you have a household income of less than £80,000 (or £90,000 in London) and are a first-time buyer or a previous homeowner who can’t afford to buy a property now.
So if you need a hand getting on to the property ladder, check out our new home ownership tool. You might have the keys to your first home quicker than you think.
¹ Trussle commissioned a nationally representative UK survey of 2,001 UK adults (18+) with research agency Opinium in November 2019.
Calculation: When asked ‘Are you aware of any governmental or non-governmental home ownership schemes aimed at helping first-time buyers get on the housing ladder’
944 respondents answered no.
944 = 47% of 2,001
² Calculation: Of the 1,057 respondents who answered ‘yes’ as above, 401 were able to recall at least one of: ‘Help To Buy’, ‘Help To Buy ISA’, ‘Help To Buy Equity Loan’ or ‘Shared Ownership’. These were also filtered to include misspellings.
401 of 2,001 total respondents = 20% or one-in-five
³ Calculation: When asked ‘To what extent do you agree or disagree with the following statements about home ownership schemes – ‘They are too complicated to understand’.
1,165 responded either ‘Strongly Agree’ or ‘Slightly Agree’.
1,165 = 58% of 2,001