One of the biggest barriers to first time buyers entering the property market is the size of deposit they need to save to purchase their home, particularly in London. Thankfully, a Deposit Boost scheme can help!
The Deposit Boost scheme is offered by a number of property developers who want to help buyers get their foot on the property ladder. It essentially offers you a top up to the deposit you have already raised. Not only can this open up more options in terms of the home you can afford, but it can ensure you get a more competitive interest rate from your lender, as you will have a higher down payment.
Different developers are offering varying versions of the Deposit Boost scheme, but it generally requires that you provide a 10% deposit for the property, and the developer then tops this up with a further 5% so that you can obtain an 85% LTV mortgage. Other developers may have a set amount that they will top up your deposit by, such as £5,000, so it’s worth getting in touch with a member of the JLL First Time Buyer team and finding out where Deposit Boost is available and what is on offer.
As an example, you might be looking at buying a new-build home listed at £200,000, and you’ve managed to save a £20,000 deposit (10%). You can apply for Deposit Boost via the developer, who will then add a further £10,000 (5%) to your deposit, which will be paid directly to your solicitor at the time of completion. You will then have a 15% deposit towards your home. Alternatively, you could save up a £15,000 deposit, and the builder could contribute £5,000, giving you a 10% deposit.
The offer won’t be available from every developer, so it is always advisable to discuss your options with JLL. It is also not available to those looking at renting their property out using a buy-to-let mortgage, to ensure that the scheme is available to homeowners only.
It can save you thousands of pounds on your purchase and enable you to secure your home more quickly. With the cost-of-living crisis placing more emphasis than ever on our outgoings, the Deposit Boost scheme can provide welcome relief to prospective and existing homeowners who have their sights set on a new-build home.
If you’re looking for more information on the Deposit Boost scheme, or on any other aspect of buying your first home, get in touch with JLL’s First-Time Buyer team today.
