How much does Help to Buy cost?
Each Help to Buy scheme is different and costs will vary, however, the costs below outline the main expenses of assisted home ownership:
Initial Costs: you will need to have access to funds to pay costs involved in purchasing your new home, these can include
- Legal fees
- Valuation report
- Deposit (required by your mortgage lender)
- Stamp duty
Long term commitments: you will then need to be able to afford the following each month:
- Mortgage repayments
- Maintenance and repair costs
- Rent (if applying for shared ownership)
- Council tax
- Water rates
- Service charge (if applicable)
- Buildings and contents insurance
- All utility bills
Your responsibility will be the same as those of any home owner. You will be responsible for repairs and maintenance and for decoration. There will sometimes be a service charge to pay for the maintenance of common areas.
Other costs you should consider are:
- Mortgage: the mortgage contract is between you and your mortgage provider. If you fall behind with payments let them know. If financial difficulties cannot be overcome, it is possible that you could lose your home. Many mortgage providers offer mortgage protection plans in the event of redundancy. It is worth looking into this option when taking out your mortgage.
- Rent and Service Charges: your landlord can take action under the lease if you fail to keep up with these payments. This could also mean losing your home.