Last updated: May 06, 2024

NHS Mortgages, First Home scheme: What are they?

Michael Harms AFPS
Director & Chartered Financial Planner at Mortgages for Doctors

First Homes scheme, NHS mortgages: what are they?

Have you ever wanted to take the first step on the housing ladder and become a homeowner? NHS Mortgage providers have made it easier for NHS workers to do just that through their First Homes scheme. The First Homes initiative offers mortgage deals with discounted deposit levels, enabling members of the NHS workforce to purchase their own homes without the heavy burden of a large mortgage.

 This means buyers from any background certain levels of income can access homeownership sooner than they could before. With this scheme, NHS Mortgage lenders are making homeownership accessible for even more people in our society.

What Is The First Homes scheme?

The First Home Scheme is a fantastic opportunity for purchasing a home as first time buyers. This is one of a few government schemes available. Whether you're a key worker or a first-time buyer, it could provide the assistance you need to make homeownership a reality. Before applying for the scheme, research what kind of discounts or mortgage assistance may be available in your area.

The government is committed to making homeownership more attainable, and without this scheme, it has always been challenging. So don't miss out on your chance to join the homeownership revolution - take advantage of the first homes today! By investing in your future through the first homes scheme, you could soon be living in your dream home.

Contact your local authority or public sector organisation to learn more about the application process. With the help and assistance of a trusted estate agent or mortgage broker, you can get started on the path to owning your first home.

What is the NHS discount on mortgages?

The first home scheme is an excellent opportunity for key workers and first-time buyers to get a foot onto the property ladder. As a key worker you could receive a special NHS mortgage discount on new homes or mortgage assistance to make buying your first home more affordable - all you need to do is meet specific income requirements and secure a mortgage. As a first time buyer, you could receive between a 30% to 50% discount on the purchase price on a new home.

The scheme is currently available in selected areas. It only applies to new homes approved developers are building, so it’s essential to check if your desired location is eligible. Don’t miss out on this fantastic opportunity!

A picture of a model house, documents, pencil and calculator on a desk.

First Home Scheme Qualification Considerations

Before applying for the first home scheme, you must consider your options and get advice from a qualified mortgage professional. Make sure you understand the terms and conditions of the scheme and any other fees or charges that may be applicable. Once you've determined that you meet the qualifications for the First Homes scheme and identify a suitable property, there are a few steps you need to take.

Ensure you have an adequate deposit

Most first time buyers will need a minimum of a 5% deposit to secure a mortgage. This means that if the property costs £180,000, you would need to have £9,000 as a deposit. You will need a First Homes Scheme mortgage which only a select number of mortgage lenders will offer.

Contact a specialist mortgage broker

Reach out to an expert in NHS mortgages to discuss your options. They will be able to guide you through the process and help ensure that you find a First Homes mortgage loan arrangement that works best for your circumstances.

Apply for the First Homes scheme

Once you have a loan in place, the next step is to apply for the First Homes scheme. The application form can be found on your local council's website or from an approved developer of new homes.

Provide documents

You'll need to provide documents such as proof of household income, bank statements, and other information showing you are eligible for the scheme.

Submit your application

After you submit your application, it will be reviewed by the local council, and a decision will be made about whether or not to approve your application for the scheme.

Wait for approval

If approved, you'll be notified of the amount of money you'll receive from the scheme and any other details related to your loan arrangement. You can then use this money towards your new home.

With the First Homes scheme, you can get a head start on owning your dream home, so don't miss out on this excellent opportunity to secure a great deal on your mortgage and make the first step onto the property ladder.

How To Apply?

Once you have gathered the necessary information, it's time to start the application process. You may need to complete various forms and provide financial documents such as pay slips, tax returns, and bank statements. After your application has been received, reviewed, and approved by your local government or public sector organisation, you will be contacted with an offer.

Depending on the program, you may need to make a minimum deposit payment or pay arrangement costs to secure your home. If approved for the First Homes Scheme, you can receive incentives such as lower interest rates and reduced fees that make owning a home more manageable.

This is an excellent opportunity for those interested in purchasing their first home and can be a great way to begin your journey into homeownership.

What Do You Need To Know About First Home Scheme?

  1. First Home scheme can help make home ownership more attainable by offering discounts on new homes or mortgage assistance to key workers and first-time buyers.
  2. To be eligible for this program, you must meet specific income requirements - you need to have a sole or joint income of below £80,000 or below £90,000 if you live in London - to be able to secure financing for your new home, and be a first-time buyer or key worker employed by the NHS or other public sector organisations.
  3. The First Home scheme is currently available in select areas, so it's essential to check if your area is applicable before you start looking for your home. Additionally, this program only applies to newly built homes from approved developers.
  4. The discounted price of the home cannot be more than £420,000 in London or £250,000 anywhere else in England once the discount has been applied.
  5. Getting started with the First Home Scheme is easy. Contact your local government or public sector organisation to obtain more information about eligibility and the application process.
  6. A trusted mortgage broker can also help navigate this process, making sure you are on track for success and get a mortgage offer.

 Disadvantages of the scheme

When selling the property, you are only able to sell to someone who is eligible to buy a first home. You must also give the same discount percentage that you received in the first place. This means your target market for who you sell to when you wish to move on will be limited by this local and national criteria.

You can receive expert advice and guidance every step of the way. Our experienced team is on hand to answer any questions and provide you with all the information you need, book a consultation here.

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