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Government Schemes To Help You Onto The Property Ladder

Help to Buy Mortgage Advice in Birmingham

Over the years, the government have launched various schemes to make it easier for home buyers and home movers to get onto the property ladder. Some of these schemes have had the “Help to Buy” label associated with them, whereas others have been put into their own category with their own unique criteria.

Over time, some of these schemes became more and more popular, leading to the government introducing more further down the line. For example, in March 2021, we have just been given the go-ahead on the “Mortgage Guarantee Scheme”.

Help to Buy Equity Loan Scheme

One of the most popular and well-known Help to Buy schemes available is the Help to Buy Equity Loan scheme. The scheme gives you a great chance to get yourself onto the property ladder. You should know that you must be a First Time Buyer and be purchasing a new-build to access this scheme. The scheme has a property price cap, here is an updated list (April 2021 – March 2023):

RegionMaximum Property Price
North East£186,100
North West£224,400
Yorkshire & the Humber£228,100
East Midlands£261,900
West Midlands£255,600
East of England£407,400
London£600,000
South West£437,600
South East£349,000

If you want to hear from the mortgage pro himself – Malcolm “the moneyman”, here is a video summarising the Help to Buy Equity Loan Scheme how you can access it:

Help to Buy Equity Loan Mortgage Advice in Birmingham | MoneymanTV

The way that this scheme works is that you put down a deposit between 5%-20% on a property and then the government will top-up your initial deposit to make up a total of a 25% deposit. For example, if you put down a 5% deposit, the government will loan you an extra 20% of the property’s value to make a 25% total.

When the government loan you extra to make up a total of a 25% deposit, you must know that this is a loan and not a gift – this is the “Equity loan”. This equity loan will have to be paid back at some point. This means that you will have a 75% mortgage and an equity loan to pay off.

Help to Buy Equity Loan Mortgage Advice in Birmingham


The equity loan will be interest-free within the first 5 years of you taking out the mortgage, however, after these 5 years have passed, the loan will start gaining interest beginning at 1.75%. If you haven’t even started paying off your equity loan, you may need to weigh up your options and even consider Remortgaging to consolidate this loan.

As a Mortgage Broker in Birmingham that offers Help to Buy in Birmingham, we strongly suggest looking further into the scheme if it sounds like something that could help your mortgage situation. If you want to see whether you qualify or not, feel free to get in touch with our Help to Buy Mortgage Advisors in Birmingham today, they will be more than happy to help!

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Help to Buy Armed Forces Scheme

The Help to Buy Armed Forces scheme was introduced to help regular armed forces personnel get onto the property ladder. It was brought into the mortgage market after it was found that there was a large number of servicemen and servicewomen who were struggling to obtain a mortgage.

It was originally a pilot scheme, however, due to its popularity and helpfulness, the government decided to extend the Help to Buy Armed Forces scheme to 31st December 2022. Here is another helpful video from our MoneymanTV YouTube channel. Take a look for an in-depth look at the Armed Forces Help to Buy scheme:

Help to Buy Armed Forces Mortgage Advice in Birmingham | MoneymanTV

The scheme is very helpful if you can qualify for it; it can allow you to borrow up to 50% of your annual salary, with the total being capped at £25,000. This amount that you have borrowed can be used for your deposit or other fees that come with buying a home, such as solicitor’s and estate agent’s fees.

You can access the scheme if:

  • You have completed the pre-requisite length of service.
  • Have more than 6 months left to serve at the time that you apply.
  • Meet the right medical categories.

If you meet the scheme’s criteria, you can apply for it through the Joint Personnel Administration System or seek Mortgage Advice in Birmingham on how to apply for it. Our Mortgage Broker in Birmingham can help explain this scheme for you in full, and tell you whether or not you’ll be able to access this scheme. They will sort everything out for you, making your mortgage experience stress-free and simple.

When applying for the Armed Forces Help to Buy scheme, you should know that you will still have to prepare documents to aid your application. Our team of Mortgage Advisors in Birmingham can help you get prepared for this so that you are mortgage ready!

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Shared Ownership Scheme

Shared ownership is the scheme that often gets applicants confused. The scheme allows buyers to purchase a share in a home. This means that you are sharing ownership of the property with a housing association. Here’s a helpful summary video on “What is Shared Ownership”:

Shared Ownership Mortgage Advice in Birmingham | MoneymanTV

With Shared Ownership, you will pay a mortgage on the share that you own, then pay rent on the remaining share. You will pay rent to the housing association linked with the property. The percentage of the property that you buy usually has to be between 25%-75% of the property, though this can be different. The lower your percentage share is, the lower your mortgage and your deposit is likely to be.

Further down the line, if you have the funds, you can opt to buy the remainder of the property if the housing association let you. People usually do this once they are settled in, have a higher income or even once their share has been paid off.

To access the shared ownership scheme, you have to meet its criteria:

  • You have to be at least 18 years of age.
  • If you are applying for the scheme in London, your annual household income has to be less than £80,000.
  • You cannot own another property in the meantime, you must sell your current home or property if you want to access this scheme. This is likely to not apply to you as a First Time Buyer in Birmingham.
  • You should not be able to afford a house on the open market that is suitable for your housing needs.
  • You can’t be in mortgage or rent arrears.
  • Your credit history need to be good (no large debts or CCJ’s).
  • You’ll have to demonstrate that you can afford regular payments and all of the costs of buying a home.

For further Shared Ownership Mortgage Advice in Birmingham, make sure to get in touch with our experienced Mortgage Advisors in Birmingham, we will be more than happy to explain the scheme for you and see whether you qualify for it or not.

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Lifetime ISA

The Lifetime ISA scheme is not at the forefront of the mortgage market despite its great ability to help get First Time Buyers onto the property ladder. The scheme is often confused with an expired government-led scheme called the “Help to Buy ISA”, and that’s partially why we believe that not many people take advantage of the scheme.

Lifetime ISA Mortgage Advice in Birmingham | MoneymanTV

The Lifetime ISA (Individual Savings Account) can be used for one of two things: to buy your first property or to save for later life. You must be between the age of 18-40 to access this scheme.

The Lifetime ISA lets you put money into an interest-free savings account, the maximum amount of money that you can add to ISA each year is £4,000. Every year, the government will top up your savings with a bonus of 25% of whatever you’ve saved.

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Focusing on using the Lifetime ISA towards the purchase of your first home, you must know that in order to take money out of the ISA, you must have had the ISA account for at least 12 months. Here is the criteria for when you want to use your Lifetime ISA savings to buy your first property as First Time Buyer in Birmingham:

  • The property that you are planning to buy must be £450,000 or less.
  • You must be over 12 months into your Lifetime ISA scheme.
  • You must use a conveyancer or solicitor to act for you in the purchase.
  • You must be purchasing with a mortgage.

If you withdraw funds from your Lifetime ISA for an unauthorised reason, you will be charged a withdrawal charge. This charge is usually around 20-25% of the savings.

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Mortgage Guarantee Scheme

Following the March 2021 Budget, we learnt that 95% mortgages were going to making their way back into the mortgage market. This time, it was going to be through a new government scheme, called the “mortgage guarantee scheme”. Feel free to watch our March 2021 Budget summary video to find out more about the scheme:

95% Mortgage Advice in Birmingham | MoneymanTV

The name of the scheme is a bit misleading, no one will ever be guaranteed a mortgage. Lenders will still take your credit score and affordability for a mortgage into account before accepting you for anything.

The scheme is simple, the government have stated that if you can make up a 5% deposit and can pass lenders criteria, you will be able to get a 95% mortgage. The great thing about this scheme is that it can be accessed by both First Time Buyers and Home Movers. The only limitation to the scheme is that the property that you are purchasing must be under £600,000.

If you need any help whatsoever with any of these government-led schemes, make sure to get in touch with our Mortgage Broker in Birmingham. We are highly experienced in dealing with all of these schemes, so if you want a simple run over of what each one does or you want further detail on one specific scheme, don’t hesitate to get in touch. We are always more than happy to help with your mortgage queries and questions.

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Mortgage Advice in Birmingham

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