6 March 2023
Save to Buy – a new scheme on the block
Saving for a deposit can be the biggest issues that sets prospective first-time buyers back in their home buying journey.
Being stuck in a vicious cycle of paying a landlord substantial monthly rent on top of all other living expenses means there's often not enough left in the bank to set aside for saving for a deposit.
This is where the brand new Save to Buy scheme – launched by new build developer Fairview Homes –comes into play.
Designed to overcome the obstacle of not being able to save for a deposit whilst still paying rent, the scheme uses the monthly rent as a savings pot to put down as your deposit.
How does it work?
You must have saved a deposit which is equivalent to 1% of the property value to be eligible for the scheme – the national average for a deposit amount in comparison is around 15%.
You will then move into your new home and pay a fixed monthly cost that contributes to topping up your deposit – much like the rent you pay your landlord, but rather it is put aside to help you save for the deposit on your dream home.
When you are one month away from saving the required deposit, you will submit a mortgage application to a lender to buy the property.
Once legally completed, you will own the home outright just like you would having purchased on the open market.
Where is the scheme offered?
Currently the scheme is being offered across two of Fairview Homes' developments in West London and in Essex.
Who can apply?
The scheme is designed for first-time buyers who would not otherwise be able to afford to save for a deposit.
How long does it take to build up enough for the deposit?
It typically takes between 6 and 12 months, but can be available for up to 2 years if necessary. If you wish to pay off your dept sooner, you can also overpay on your monthly payments.
When will the scheme come to an end?
The scheme is scheduled to come to an end in December 2023, and will be offered on a first come, first served basis on selected homes across selected developments.
Are there other schemes available for first-time buyers?
There are a number of schemes offered by the Government to help you get your foot on the property ladder. From Shared Ownership to Lifetime ISA, you can read all about buying schemes here.