Are you a first-time buyer looking to get on the property ladder in the charming region of Cheshire? With its picturesque towns, vibrant cities, and excellent connectivity to Manchester and Liverpool, Cheshire is an ideal location for many.
However, buying your first home can often feel out of reach. That’s where the Help to Buy scheme comes in, making homeownership more accessible than ever.
What is the Help to Buy Scheme?
Help to Buy is a government-backed initiative designed to assist first-time buyers in purchasing a new-build property with just a 5% deposit.
The scheme offers an equity loan of up to 20% of the property’s value (40% in London), which remains interest-free for the first five years.
This can significantly reduce your mortgage amount, making it easier to secure a competitive mortgage deal with lower monthly payments.
the Help to Buy scheme across the UK, including in Cheshire, had been simplified primarily to focus on the Help to Buy: Equity Loan scheme. However, some additional schemes and local initiatives can also assist buyers in Cheshire.
Here’s a breakdown of the Help to Buy home schemes and similar assistance programs that could help you purchase a home in Cheshire:
1. Help to Buy: Equity Loan
- Eligibility: This is available for first-time buyers purchasing a new-build home. The property price in Cheshire must not exceed the regional price cap of £224,400.
- How It Works: Buyers need to contribute a 5% deposit, with the government offering a loan of up to 20% of the property’s value. This loan is interest-free for the first five years. You then need to secure a mortgage for the remaining 75% of the property value.
- Popular Cheshire Locations: This scheme applies to many new-build developments across Cheshire, including places like Chester, Warrington, Crewe, Northwich, and Nantwich.
2. Shared Ownership
- Eligibility: This scheme is typically open to first-time buyers, those who have owned a home but can’t afford to buy now, or people with a household income of less than £80,000 annually.
- How It Works: Buyers purchase a share (between 25% and 75%) of a property and pay rent on the remaining share. Over time, you can increase your share through a process called “staircasing” until you own 100% of the property.
- Popular Cheshire Locations: Shared Ownership homes are available in developments across Cheshire, particularly in areas such as Macclesfield, Knutsford, and Warrington.
3. First Homes Scheme
- Eligibility: Designed for local first-time buyers and key workers. Priority is given to those with local connections to the area.
- How It Works: Under the First Homes Scheme, new-build homes are offered at a discount of 30% to 50% below market value.
The price cap for properties is generally lower than the Help to Buy scheme but offers greater affordability due to the discount. - Popular Cheshire Locations: This scheme is often available in local developments across towns like Crewe, Wilmslow, and Chester.
4. Help to Buy: ISA (Closed to New Applicants)
- Eligibility: While this scheme has closed to new applicants since November 2019, those who opened a Help to Buy ISA before the deadline can still benefit. This scheme offers a government bonus of 25% on savings when buying a first home.
- How It Works: The ISA savings are intended to help with the deposit for a home, and the bonus can be used towards homes priced under £250,000 in Cheshire.
5. Local Authority and Housing Association Schemes
- Eligibility: These schemes often cater to those with lower incomes or specific needs and vary by local council.
- How It Works: Cheshire’s local authorities and housing associations sometimes run affordable housing schemes that can include discounted sales, rent-to-buy options, and special homeownership assistance.
For example, Cheshire West and Chester Council and Cheshire East Council have their own housing strategies for affordable home ownership. - Popular Cheshire Locations: These schemes are often tied to specific developments within council areas like Chester, Macclesfield, and Northwich.
6. Rent to Buy
- Eligibility: This scheme is aimed at renters who are not yet ready to buy but intend to own their home in the future.
- How It Works: Renters pay below-market rent for a period (usually five years) while they save for a deposit. After this period, they have the option to buy the property.
Examples of Help to Buy Eligible Developments in Cheshire
Here are some popular new-build developments in Cheshire that are often eligible for Help to Buy:
- Kingsbourne, Nantwich – A variety of stylish new homes in a picturesque setting.
- Bridgewater Park, Warrington – A contemporary development offering family homes with good commuting options.
- The Pastures, Sandbach – New-build homes with excellent access to local amenities and transport links.
- Winnington Village, Northwich – A thriving new village with a wide selection of family homes and first-time buyer properties.
Popular Cheshire Locations: This scheme applies to many new-build developments across Cheshire, including places like Chester, Warrington, Crewe, Northwich, and Nantwich.
Contact details for the Help to Buy agent for Cheshire.
Tel: 0300 790 0570
Email: enquiries@helptobuyagent1.org.uk
Is Help to Buy Right for You?
Help to Buy has already helped thousands of buyers in Cheshire secure their dream home. However, it’s essential to weigh the pros and cons. While the scheme makes homeownership more accessible, remember that the equity loan is a shared ownership with the government, meaning they will take a share of the profit when you sell the home, proportionate to the loan they provided.
For many first-time buyers, the ability to enter the housing market sooner outweighs this consideration, particularly in sought-after areas like Cheshire.
If you’re ready to make Cheshire your home, Help to Buy could be the perfect stepping stone to securing your first property.