Introduction
PARENTS Chae and Cem were able to boost their deposit with a "DIY Help to Buy scheme" to help them bag their £466,000 first home.
Finding the Dream Home
Chae Sarjant, 28, who works in Pets at Home, and her partner Cem, an IT consultant for the NHS, were desperate to find a place to settle with their sons Kayden, five, and one-year-old Mason. After stumbling across the ideal two-bedroom home for sale just a five-minute walk away from Chae’s mum in East Finchley, London, the pair set their sights on home ownership.
The Deposit Booster Scheme
The couple used a Deposit Booster scheme to afford their first home. The scheme allows any number of friends or family to put money towards a borrower’s savings. Usually, mortgage lenders want money from family towards a deposit to be officially declared as a gift. But Generation Home instead provides a binding agreement that allows parties to either gift, provide an interest-free loan, or give an equity loan. Co-founder Sophia Guy-White previously described the scheme as a "DIY Help to Buy" scheme. But unlike the government scheme, hopeful homeowners aren’t limited to new-builds and can previously have owned a property.
Getting Help with the Deposit
Chae and Cem got £85,000 from their parents to go towards their £100,000 deposit. They have agreed to return all the cash to Chae’s parents once they sell the property.
Other Schemes to Boost the Deposit
Getting financial help from family, even in the form of a loan, isn’t possible for everyone. But don’t worry, as there are other schemes out there to help first-time buyers boost their deposit. The First Homes scheme allows buyers to bag a home for between 30% and 50% less than its market value through the government’s First Homes scheme. You can also buy a home through the shared ownership scheme if you can’t afford all of the deposit and mortgage payments for a home that meets your needs.
First-Time Buyer's Tips
Chae shares some advice for other first-time buyers. If you are living at home, try to save as much money as you can because it becomes a lot harder once you start renting. Plus, she recommends considering the First Homes scheme and shared ownership scheme as options.
