Dear Future Burnley Homeowner, I’ve lived my entire life in the lovely town of Burnley. I’ve seen it change and grow into an amazing place. I’ve also watched the real estate market over the years. Now, I’m excited to talk to anyone interested in buying a house in Burnley through the Help to Buy Equity Loan scheme.
To start with, the Help to Buy Equity Loan scheme is a government program that helps people in England buy a house with just a five percent deposit. This scheme can make it easier to afford a house. This can be especially helpful in a market like Burnley, where the cheapest houses aren’t always the best. As a local real estate expert, I want to share my knowledge and tips so you can make the most of this scheme.
Let’s begin by understanding how the Help to Buy Equity Loan scheme works in Burnley and rest of England. To use this scheme, you need to put down at least 5% deposit on the house you want. The government will then lend up to 20% (40% in London) of the house price. This loan is free of charge for five years. After that, there’s a 1.75% fee that increases slightly every year, based on the Retail Price Index plus 1%.
In Burnley, the typical house price is about £140,000. This means that with a 5% deposit (£7,000), you can get a government loan of up to 20% (£28,000). This loan can make it easier for you to get a mortgage from a lender.
There are a few things to keep in mind with this scheme. First, you can only use the Help to Buy scheme for new homes, and the house can’t cost more than £600,000. I recommend using local knowledge to find good property developers in Burnley. Second, remember that the government loan isn’t interest-free forever – it’s only free for the first five years.
Make sure you think about whether you’ll be able to pay the loan fees after the first five years. If you decide to sell your house, you’ll have to pay back the loan to the government. The amount you pay back is based on the value of your house at that time, not the original loan amount. So, if your house’s value goes up, you’ll have to pay back more.
Lastly, make the most of resources like local Help to Buy agents, solicitors who know about the scheme, and financial advisors. The Burnley real estate market offers many great houses in different price ranges. Be patient if you can’t find your perfect house straight away – remember, good things take time.
In conclusion, the Help to Buy Equity Loan scheme could help you become a Burnley homeowner. As a life-long resident and real estate expert, I believe this scheme could be a great opportunity. Make sure to plan, do your research and talk to professionals before making a decision. Remember, a home is not just an investment, it’s a step towards a happy future for you and your family in the beautiful town of Burnley.