Overcoming Homebuying Challenges

For many aspiring homeowners, the journey to purchasing a property can be fraught with challenges, including saving for a deposit, securing a mortgage, and finding an affordable home. At Castle View Finance, we recognise these hurdles and are committed to providing valuable insights into government first-time buyer schemes to facilitate your entry into the property market.

Help to Buy: Mortgage Guarantee Scheme

Introduced by the government in April 2021, the Mortgage Guarantee scheme aims to bolster the availability of 5% deposit mortgages by offering lenders a government-backed guarantee. Under this scheme, lenders pay a fee for the guarantee, which provides partial compensation for any losses incurred in the event of repossession.

Key Points to Note:

  • The scheme incentivises lenders to offer 95% loan-to-value (LTV) mortgages, enhancing accessibility for first-time buyers.
  • Eligible properties, both new and existing, must be priced below £600,000, with criteria varying among lenders.
  • While not all lenders participate in the scheme, consulting a reputable mortgage broker is essential to explore your options and secure the best deal.
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Help to Buy: Equity Loan (2021 – 2023)

While no longer available, the Help to Buy Equity Loan scheme (2021-2023) provided a lifeline for first-time buyers seeking to purchase a new home with a 5% deposit. Participants could obtain an equity loan from the government, covering up to 20% (or up to 40% in London) of the property’s value.

Shared Ownership

Shared ownership offers a pathway to homeownership for eligible buyers by allowing them to purchase a share (typically 25%-75%) of a property and pay rent on the remaining portion to the housing association or developer. This arrangement makes buying more affordable, with the flexibility to increase ownership over time.

First Homes Scheme

Launched in June 2021, the First Homes scheme extends a 30% discount to first-time buyers purchasing new properties. Eligibility criteria, including income thresholds and priority considerations, are determined by local authorities.

Help to Build

Designed for self and custom builders, the Help to Build scheme facilitates access to lower deposit mortgages and government-backed loans upon project completion, akin to the Help to Buy: Equity Loan scheme.

Lifetime ISA (LISA)

A LISA incentivises saving for a first home or retirement by offering a 25% government bonus on annual contributions up to £4,000. This tax-efficient account empowers individuals to accelerate their journey towards homeownership.

Rent to Buy

Under the Rent to Buy scheme, renters can lease newly built properties with the option to purchase in the future, providing a pathway to homeownership while renting.

Right to Buy

Council tenants may exercise their Right to Buy, enabling them to purchase their home at a discounted price, subject to eligibility criteria based on residency and property type.

Considering Other Options?

Explore alternative routes to homeownership, including 100% mortgages, financial assistance from family ‘The Bank of Mum and Dad’, and innovative mortgage products tailored to first-time buyers’ needs.

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15 Finkle Street
Carlisle
Cumbria
CA3 8UU


Castle View Finance Ltd is an Appointed Representative of Connect IFA Limited 441505 which is Authorised and Regulated by the Financial Conduct Authority and is entered on the Financial Services Register (https://register.fca.org.uk/s/) under reference [983869]

The FCA does not regulate some forms of Business But to Let Mortgages and Commercial Mortgages to Limited Companies.

The information contained within this Website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK. We usually charge a fee of £499 standard and £995 complex

Castle View Finance Ltd Registered Address: 15 Finkle Street, Carlisle, Cumbria, CA3 8UU

Registered in England and Wales No: 13698579

Commission disclosure: We are a credit broker and not a lender. We have access to an extensive range of lenders. Once we have assessed your needs, we will recommend a lender(s) that provides suitable products to meet your personal circumstances and requirements, though you are not obliged to take our advice or recommendation. Whichever lender we introduce you to, we will typically receive commission from them after completion of the transaction. The amount of commission we receive will normally be a fixed percentage of the amount you borrow from the lender. Commission paid to us may vary in amount depending on the lender and product. The lenders we work with pay commission at different rates. However, the amount of commission that we receive from a lender does not have an effect on the amount that you pay to that lender under your credit agreement.