Affordable rented housing
Affordable rented homes are provided by both the council (provided by Homes in Sedgemoor) and registered providers (housing associations), or in some cases by private landlords who charge rent below that charged on the open market.
For the rent to be classified as affordable, it must be no more than 80% of the market rent (including Service charge).
These homes are ideal if you do not want to, or are unable to, get a mortgage.
If you wish to apply for rented housing, you can do so by visiting Homefinder Somerset.
Social rented housing
Social rented homes are provided by both the council (provided by Homes in Sedgemoor) and registered providers (housing associations).
These homes are ideal for people and families with a low income.
If you wish to apply for rented housing, you can do so by visiting Homefinder Somerset.
Help to Buy (Equity Loan)
With a Help to Buy Equity Loan the government will lend up to 20% of the cost of the newly built home, a 5% cash deposit and along with a 75% mortgage would make up the rest. You will not be charged loan fees on the 20% for the first five years of owing your home.
Example: If you purchase a newly built property with a value of £200,000, you will need to have a deposit of £10,000 (equal to 5% of the property value). The government will then give you a loan of £40,000 (equal to 20% of the property value), meaning you have to get a mortgage for £150,000 (75% of the property value).
You can find more information on Help to Buy Equity Loan here
Help to Buy Individual Savings Account
The Help to Buy Individual Savings Account is designed to help first time buyers save up for a mortgage deposit. It allows you to save up to £1,200 in the first month from opening your account, and then up to £200 a month from then on.
When purchasing your first home, the government will give you an additional sum of money equivalent to 25% of the money you have saved in your Help to Buy Individual Savings Account up to £12,000. The maximum contribution from the government would be £3,000.
Example: If you save the full £1,200 in the month you open your Isa and then save £200 a month for the next 3 years, you will have saved £8,400, and when purchasing a property you will receive £2,100 from the government. This will give you a total of £10,500 to put towards your deposit.
For further information on Help to Buy Individual Savings Account visit Help to Buy Individual Savings Account
Rent to Buy Schemes
Rent to Buy Schemes are run by housing associations and registered provider, where they will offer rented homes at 20% below market value. This then allows you to set aside the 20% you are saving to put towards a deposit for your home. After a predetermined time you will the be able to purchase your home or a portion of your home on the terms of shared ownership (more information about shared ownership above).
Discounted open market sales
Discounted open market housing: new developments
You will own the whole share of the property, but will only pay between 60% and 80% of its open market value. You will need to speak directly to the house builder for information on this product. You can find further details on Discounted Open Market Housing on the Help to Buy South West website.
Discounted open market housing: re-sales
Similar to new developments, you will own the whole share of the property, but will only pay between 60% and 80% of its open market value. These homes will be advertised with local Estate Agents and on the Help to Buy South West website.