Government Can Solve Your Mortgage Woes

Shared equity schemes are increasing in popularity. This is primarily down to the much hiked deposit requirements which has meant for many people saving the required deposit is pretty much impossible. Before the credit crunch many could get mortgages without the need for a deposit, banks were making it as easy as possible for people to borrow however now while there are a few 10% deposit mortgages, your credit rating would have to be almost perfect, the normally is at 20-25%. If you want a good interest rate then you will need to be able to put up a 25% deposit, that's £35,000 on a £140,000 home, who has that kind of money?

So you can now see why shared equity mortgage schemes are becoming more popular, they bridge the gap and allow people to be able to buy a home. There are a couple of different shared equity schemes available. Depending on where you live in the UK you can apply for government assistance. If you live in England the scheme is known as HomeBuy and in Scotland the equity schemes come under LIFT which stands for Low-cost Initiative for First Time Buyers.

The LIFT scheme is designed to help those on low to moderate incomes buy their first home. The scheme has recently been extended across Scotland so you should be able to benefit from government help in your area.

The lift shared equity schemes is administered by social landlords who handle applications and the scheme on behalf of the Scottish Government. Those wishing to apply should understand that there are certain criteria which each social landlord will assess applications on including your income and savings that you have, it's an affordability test as they are looking to help those that would be unable to afford the mortgage under their own steam.

If you are approved for assistance you only have 12 weeks to use the funds awarded to you so it is best to have your house searching already done so you don't spend time on finding the right house for you and your family.