Owning your own home is something that everyone hopes they will be lucky enough to do someday. It is one of the understood expectations of life that every living experience you have builds towards the day when you can finally have somewhere you can call your own.
While sharing a flat or a house with others when looking for a start in life can be a valuable formative experience, there comes a time when being able to use the hot water without fear of attack, having a little more privacy or simply being able to commit to a relationship become more desirable.
In an ideal world, making that kind of switch would be fairly easy. Saving for a realistic deposit on an apartment or a house was once an obtainable goal that could be achieved within a reasonable timeframe. However, with the rising house prices that started in the late 1990s, and the damage done to the housing market during the recent economic crash, this process can be much harder for younger generations.
Help is at hand though, with the advent of the help to buy scheme, in particular the help to buy mortgage guarantee policy.
Although this policy has its critics, it is designed to help people buy their own home without having to spend most of their adult lives saving just to meet the standard deposit. The policy will last until December 31st 2016 and is in effect across the United Kingdom.
It is run with lenders and house builders who have signed up to participate in the scheme.
Whatever the effects of the policy, it cannot be denied that it is aimed in the right place. The financial cost and commitments necessary to fund a deposit for a mortgage (never mind the stamp duty, legal fees, registration fees and whatever other miscellaneous charges the process incurs) is both a physical and psychological barrier that can leave prospective buyers unsure and confused at the worst possible time.
Making good use of the scheme can demystify the process and leave you feeling, at the very least, better informed about your options and how best to take advantage of them. It is important to note that the help to buy mortgage guarantee policy is applied differently across the United Kingdom and different terms and conditions for eligibility are likely to apply.
In Scotland, for example, the highest property value that is eligible for the scheme is £400,000 rather than the £600,000 limit that is set in England. Similarly, the equity scheme and how the repayment process works is structured in a different way too, to match standard mortgage practice in the country.
You will also have to seek the advice of an independent financial advisor before you finalise any kind of mortgage guarantee in order to ensure that you fully understand the financial cost to you, as well as your own financial circumstances.
This advice in itself can be extraordinarily helpful as it can help you really get a grip with your money and how best to use it regardless of whether you pass the eligibility test for the scheme. Learn more about this by researching Cala Homes Help to Buy Scotland.