FIRST TIME HOME BUYER BENEFITS

There is a lot of emphasis put on owning your own house, but getting on the property ladder is one of the most difficult things to do, financially. Long term, however, and there are so many advantages to owning your own home. Here we look at what first time home buyer benefits there are for those thinking about entering the property market. We will look at: You’re not in a chain, The process is quicker, There are financial schemes available, Stamp duty is not applicable to homes below £300,000

    

Higher interest rates

THE PROCESS IS QUICKER

THERE ARE FINANCIAL SCHEMES AVAILABLE

STAMP DUTY IS NOT APPLICABLE TO HOMES BELOW £300,000

WHAT ARE THESE FIRST TIME BUYER BENEFITS?

Despite the huge hurdles you have to overcome to get on the property ladder, there are many benefits to being a first time buyer. In fact, in some ways it’s harder for those who already won property to have an easy ride when it comes to buying a house.

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STAMP DUTY

Stamp duty can be a crippling amount of money to pay for someone in the process of buying a house. However, it was announced in 2017, that stamp duty would be abolished for first time buyers buying a home under £300,000. This means a significant amount of money can be saved with this new legislation.

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CHAIN

First time buyers are seen as an attractive prospect, as they do not have a house to sell in order to buy the house they want. This means that they have the finances in line already to purchase and there’s no third party hold ups.

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THE PROCESS

Selling your home to a first time buyer is a surefire way to get the whole process done as quickly as possible. First time buyers are ready to move into the house, with all the approved finance, and no reliance on anyone else in the process. Plus if the seller has a hold up, there is much more flexibility in the process with a first time buyer.

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FINANCIAL SCHEMES

The government is keen to get as many people in home ownership as possible. As a result, there is a huge array of schemes available for first time buyers. We outline them all here, and will range in suitability depending on your circumstances.

OUR EXPERTISE

SO, AS A FIRST TIME BUYER, I SHOULD HAVE AN EASY RIDE?

Not exactly. Purchasing your first home can be financially difficult. The first obstacle is the deposit, which in today’s market, should be around £33,000 for property outside of London (and it’s over £100,000 for a home in the capital), according to the latest figures.

For an individual who doesn’t own any major assets, this is a huge amount to raise, and is more than the average salary in the UK. Then there is the mortgage approval, which can falter depending on your income, credit score and personal circumstances.

If you do get as far as owning your home, you will need to bear in mind that all repairs need to be paid for by you. One of the luxuries of renting is that maintenance is covered by the landlord, so first time buyers should always have some money put aside for boiler repairs, roof problems, decorating amongst other things.

As a result, only a select margin of the population can afford to buy their own house, meaning a large percentage of the public out priced out.

"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 for first time buyers

HOW CAN HiP CHANGE THE PROPERTY MARKET?

While we can’t control property price rises, we can change the way property is bought. The traditional methods mean that it is an impossibility to own a house. But not with HiP.

WITH HIP, YOU CAN ACCESS THE EQUITY TIED UP IN YOUR HOME

HiP has revolutionised the marketplace. We believe that everyone should have access to owning their own home. And we believe the current system is archaic, inefficient and restrictive.

We are redefining how the world looks at property ownership

HiP has turned the value of a property into something liquid. We can help first time buyers buy their first home in a different way. First of all they can raise as much as they can to buy whatever house they want. Investors can then be invited to cover the cost of the rest of the property. The homeowner can then buy back the investors share over time, using capital or simply getting the equity to cover the cost. It’s an easier, more accessible and more inclusive way of using the value of property to get to where you want to be – and we believe it’s the perfect solution to the many problems facing first time buyers.

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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