Finance and Business

Help for First-time Buyers? New Midlands Scheme Promises Deposit Boosts

If you're a first-time buyer in the Midlands struggling to scrape together a deposit for your dream home, then there might be some good news for you. A brand new government-backed scheme is being piloted in the West Midlands, with the aim of helping more people get on the property ladder. So how does it work, and is it really going to make a difference? Let's take a closer look.

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What Is the Scheme?

The new scheme, called "Help to Own," is being designed to help first-time buyers purchase a property with a deposit of just 5%. That's significantly lower than the typical deposit of around 10% or even higher that most lenders require these days.

Here's the key difference between Help to Own and other government schemes like Help to Buy: with Help to Own, the government doesn't actually lend you any money. Instead, it acts as a guarantor on your mortgage.

This means that if you can't keep up with your repayments and end up repossessing the house, the government will step in and cover the shortfall between what the house sells for and what you still owe on your mortgage.