What
FIRST TIME BUYER SCHEMEs
are out there?

In these times of wage freezes and inflation rises, it’s almost an impossibility for a large percentage of first time buyers to get on the property ladder without considerable help. This is why the government have brought out a range of first time buyer schemes which are designed to provide a helping hand to people who want to own their first home with a little less difficulty. These schemes include:

    

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HELP TO BUY EQUITY LOAN

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HELP TO BUY LONDON

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HELP TO BUY ISA

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STARTER HOMES SCHEME

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SHARED OWNERSHIP

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RIGHT TO BUY

SO WHAT DO THESE FIRST TIME HOME BUYER SCHEMES DO?

They do a variety of things, from providing a savings account with high interest rates to helping you out with a percentage of the property value in exchange in the form of a loan

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HELP TO BUY EQUITY LOAN

Where the government provides you with 20% of the property value to go alongside your 5%. Note that this in an interest-free loan for five years, and in year six, a loan fee of 1.75% will kick in, and will increase at the retail prices index plus 1% every year thereafter.

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HELP TO BUY ISA

This is a resource for those saving for their first home. For every £200 you save, the government will add £50. The maximum savings this allows for is £12,000 – which is the equivalent of an extra £3000 from the government.

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RIGHT TO BUY

The Right to Buy scheme allows council tenants who have three years’ consecutive tenancy to buy their home at discounted rate.

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STARTER HOMES SCHEME

This is available to anyone between the ages of 23 and 40 who doesn’t yet own a home and have never previously owned a property. These homes will be sold at a 20% discount on the market price. The price cap on these homes is £250,000 – and £450,000 for London property.

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HELP TO BUY LONDON

Specifically for those living in London and Greater London, and in the same vein as Help to Buy Equity Loan. The main difference is that the government will lend up to 40% of the property price.

Apply for mortgage with HiP

SHARED OWNERSHIP

This allows you to buy a share of your home in partnership with your local housing association, and pay an affordable amount of the part you don’t own.

OUR EXPERTISE

ARE FIRST TIME HOME BUYER PROGRAMS A GOOD IDEA?

In the traditional format of lending, it could be considered that first time home buyers are useful to a certain extent. The high interest is definitely helpful to a first time buyer with little capital. However, there are some schemes which will only delay the amount of money you pay, with loan fees on top of the mortgage loan fees you will already pay.

As a short term solution, they have their benefits. Most of them do have their payback day, however, and you need to prepare for this as you approach the time to start repayments.

"Hip has incredible potential. It brings accessibility and transparency to the property market for owners, occupiers, investors and developers, and allows them to take control and leverage the balance of their debt to equity to their own advantage."

Paul Danks,

Newmark Grubb Knight Frank

HiP as buy-to-let alternative

SO WHAT’S DIFFERENT ABOUT HIP COMPARED TO FIRST TIME BUYER SCHEMES?

HiP treats owning a home a lot differently to how banks and lenders do. We do away with the hierarchy, the stipulations and the harsh penalties currently associated with mortgage lenders. We democratise the process, and help homeowners and first time buyers empower themselves and access their property wealth.

HiP looks at things rather differently

In the relationship of owner, property and lender, HiP believes that the property is the most important aspect. Property will always increase in value, no matter who has loaned the money, or who lives within its walls.

A number of ways we help first time buyers:

We allow you to set the bar on how much you can afford, you to choose what house you want to live in, we allow you to invite investors onboard to make up the surplus on the house price, with us you can buy more of the house as you go, as well as have access to the equity to do this, or to do what you wish – even cover the repayments for a few months.

And that is only the beginning of it

Those are just some of the ways we’re making it easier on everyone, whether they own a house, or are trying to break into the market. It’s much more fair, it’s much more democratic, and it’s much more in keeping with the 21st century than the old system.

HOW YOU BENEFIT WITH HIP

HiP is the NEW Way
to finance property

HiP Property: Our Aims

Reinvent the way you look at property investment

HiP is hugely beneficial to property owners, changing the way we can use bricks and mortar into something with far more fluidity than ever before. It is a debt and equity exchange, with investors all over the world interested in putting their money into property.

Turn Your Property Into a Bank Account

For you, this means a democratised property market; withdraw money from equity without moving, borrowing or losing ownership, use your equity to cover your monthly mortgage repayments, or trade your equity against your mortgage.

Flexibly in the high-yield property markets without limits

We allow you to do all this, and much more, without the penalties, costs and charges that a traditional lender would impose. Whatever your property investment or finance needs may be, HiP is on hand to help you take your next step.

HiP is regulated by the FCA

HiP UK will be regulated by the FCA*

And have an agreed licence for trading in the UK and Europe. *As we go live these permissions are being reviewed.

HiP is based in London

HiP UK is based in London.

HiP's 20+ staff operate from Camden, London. With registered address in Bristol.

HiP is award winning

HiP is award winning

We have won an awards and been shortlisted for more. We came second in the worldwide PropTech Innovation Awards and as Bronze in the Digital Impact award 2017 for “Best use of digital by sector”.

Register your interest

Just fill out the form on this page now, and you’ll be the first to find out about HiP, which we are busy creating. We can’t wait for you to join the property revolution.

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Frequently Asked Questions

ARE THERE ANY PROGRAMS TO HELP FIRST TIME HOME BUYERS?

There are several government programs which have been introduced to ease the way for first time buyers to get on the property ladder. These include:

Help to Buy Equity Loan – where the government provides you with 20% of the property value to go alongside your 5%.

Note that this in an interest-free loan for five years, and in year six, a loan fee of 1.75% will kick in, and will increase at the retail prices index plus 1% every year thereafter.

The Help to Buy Equity Loan is only available on new-build properties in England worth up to £600,000. The scheme will remain open until at least 2021, but there is no Help to Buy scheme available in Northern Ireland.

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WHAT IS THE BEST MORTGAGE FOR A FIRST TIME BUYER?

The best mortgage for a first time buyer will generally depend on their circumstances, but will inevitably rely on the low bank rates in the UK at the moment – making mortgages relatively cheap. For those struggling with deposits, there are a number of mortgages at 95% and even 100% to help get you on the ladder. HiP can help first time buyers own property without the usual higher rates and hidden catches.

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WHAT’S A REALISTIC DOWN PAYMENT PERCENTAGE FOR A FIRST-TIME HOME BUYER?

Most mortgages require a deposit which is equal to 5% – 20% of the property’s value. The higher the deposit, the better the range of mortgage deals you will have access to.

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WHAT IS THE BEST ADVICE YOU CAN GIVE TO A FIRST TIME HOME BUYER?

It’s important to bear a few things in mind when you’re looking to buy property as first time buyer. These include:

Put aside as much money as possible – You’ll need money, not just for your deposit, arrangement fees and solicitor costs, but you’ll also require a buffer for repainting and furnishing your home, as well as any other jobs that need doing in order to keep the house well maintained. If possible, it’s a good idea to try and have some money put aside for an emergency fund, for when the boiler breaks, or a roof tile needs replacing etc.

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WHAT ARE THE PROBLEMS FACED BY FIRST TIME HOME BUYERS?

First time home buyers can find the whole process of buying a home incredibly difficult. Some of the main problems include:

Being approved for mortgage – you need to have a good credit score and be on a certain income in order to be approved for a decent mortgage.
Saving up for a deposit – saving up to 20% of a property’s value – while still paying rent and the normal overheads, may be very difficult for many people

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HOW DO YOU GET A FIRST TIME HOME BUYERS LOAN?

The best place to go for information on the best home buyers loan is an independent mortgage broker. These individuals are not tied to any organisations so will offer you impartial advice that suits your situation.

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WHAT ARE PERKS FOR FIRST TIME HOME BUYERS?

From a buying point of view, first time buyers won’t be in a chain or have a property to sell, so therefore an attractive prospect for anyone selling their property. This means there are no ties, and the process will be a lot speedier.

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ARE THERE ZERO DOWN PAYMENT OPTIONS FOR FIRST TIME HOME BUYERS?

Yes 100% mortgages do exist, but they’re not common. 100% mortgages allow you to borrow the entire amount without putting down a deposit, or down payment. This is right for someone who has no savings, however they are not widely used as, in the eyes of the lender, there is a high level of risk involved.

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WHAT IS A FIRST TIME BUYER HELP TO BUY MORTGAGE?

The Help to Buy scheme is a government initiative which was launched in 2013 and runs to 2020. It was put in place to help anyone struggling to save for a deposit on their first home, or for people having problems moving house due to insubstantial equity.

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HIP INTERACTIVE PROPERTY LIMITED.,
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6 Bayside Road, Gibraltar, GX11 1AA.
Company # 116550.

HIP INTERACTIVE PROPERTY UK LIMITED is registered in the UK, and adheres to The Standards of Lending Practice.

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