Categories: Opportunities 1 Comment

¿Thinking about a mortgage in the UK? There are many options for you!

Part of our personal development is to be able to materialize goals that allow us to leave the poverty line and empower the development of all communities through the improvement of the quality of life. It is no secret to anyone that accommodation in the UK is extremely expensive. However, since 2010, the British Government has announced different schemes so that those who dream of owning their own homes in the United Kingdom can achieve it. Althouth is sounds crazy, it’s posible.

C&O has researched with a wide group of the Latin community who have been able to get a mortgage in the UK. This blog explains the most important mortgage schemes: Help To Buy – Equity Loan,  Help to Buy – ISA, Help to Buy – Shared Ownership, Right to Buy, Right to Acquire y Rent to Buy.

Help to Buy – Equity Loan:

  • Only available for newly built homes (house, flat, etc.) in England. This scheme varies slightly for properties in Scotland, Wales, and Northern Ireland.
  • You only need a 5% cash deposit of the overall property value. In England, the Government lends up to 20% of the cost of the property, so you need to apply for a 75% mortgage. In London, the Government lends up to 40%, so you need to apply for a 55% mortgage. You will not be charged loan fees on the Government loan for the first five years. The mortgage can be paid out at any time.
  • Example:
Details Percentage (%) Value (£)
Property Value   £100,000
Minimum deposit 5% £    5,000
Government loan 40% (max in London) £ 40,000
Mortgage to request 55% £ 55,000


Help to Buy – Shared Ownership

  • This scheme applies for either new build or second – hand homes.
  • You have the chance to buy a share of your home (between 25% and 75% of the value of the property), and pay rent on the remaining share. Later on, you can buy bigger shares if you want to.
  • You need to have a minimum 5% deposit of the property value.
  • Those receiving benefits or on waiting lists for housing benefits will be given priority.
  • Example:



Details Percentage (%) Value (£)
Property Value   £100,000 (1)
Share to purchase of the property 50% (based on (1) £  50,000 (2)
Remaining share to pay rent 50% (based on (1) £   50,000 (3)
Minimum deposit 5% (based on (2) £     2,500
Mortgage to request 95% (based on (2) £   47,500
Rent amount to pay May vary, usually 3% (based on (3) £     1,500 per annum

(£      125 per month)

Service Charge Variable according to property type, property expenses, etc.  



Help to Buy: Equity Loan vs Shared Ownership

Details Equity Loan Shared Ownership
Minimum deposit 5% of the property value 5% of the share of the property to be purchased
Maximum value of the property England (incl. London): £600,000

Scotland: £230,000

Wales: £300,000

Property type New build New build or second – hand
Freehold / Leasehold Any type Only Leasehold
% Property ownership 100% Depends on share purchased (between 25% and 75%)
Scheme availability Until 2021 N/A


Help to Buy – ISA

  • This scheme helps you save to buy your first home. You can not own any properties.
  • It is equivalent to a savings account. Most of Banks, Building Societies, and Credit Unions offer this type of account.
  • You can only have one Help to Buy ISA at any one time.
  • When you open this account, you can deposit maximum £1,200 up front. Then, you can save up to £200 monthly.
  • This scheme will provide a bonus from the Government up to 25% of your savings (up to a maximum of £3,000)


  • Maximum value of the property is £250,000 (£450,000 in London).
  • Your solicitor will claim the bonus paid for by the Government. This bonus can only be used to purchase the property, not for other expenses.
  • These type of accounts can only be opened until November 2019
  • Example:
Details Percentage (%) Value (£)
Savings in Help to Buy ISA   £10,000
Government bonus 25% £    2,500
Total: Savings+ Bonus   £ 12,500


Further information:

Right to Buy

  • This scheme helps to buy “Local Council” properties in England.
  • You need to be a tenant for at least 3 years to qualify for this scheme.
  • Discounts start at 35% of the property value after 3 years of tenancy. You get another 1% extra for every year of tenancy, up to a maximum of 70%. However, this discount cannot be greater than £ 80,900 (£108,000 in London).
  • Example:
Details Percentage (%) Value (£)
Property value   £100,000 (1)
Tenancy period   10 years
Discount 35% + 1% for every year after year 5: 40% £ 40,000
Property value (mortgage to request) 60% (based on (1) £ 60,000


Further information (en inglés):


Right to Acquire

  • This scheme allows buying houses from “Housing Associations” in England. These entities own the properties (Landlords) which were possessed by the “Councils” previously.
  • Discounts range from £9,000 to £16,000 of the property value.
  • You need to be a tenant for at least 3 years in a “Housing Association” to qualify for this scheme.
  • Example:
Details Percentage (%) Value (£)
Property value   £100,000 (1)
Tenancy period   3 years
Discount   £ 9,000 (2)
Property value (mortgage to request) (1) – (2) £ 91,000


Further information:


Rent to Buy

  • Available to buy houses from Housing Associations or Social Landlords.
  • You must buy your house for the first time to qualify.
  • Great option in case you do not have enough savings for your deposit.
  • Only available for new build properties.
  • You will pay the rent of the property for around 20% less than the typical open market rent values. Hence, you will be able to save more towards a bigger deposit in the future.
  • The tenancy period is up to 5 years. After that, you either have to buy part of the property or leave.



  • The Government offers a free and unbiased financial service advice, including mortgages:
  • Always check if you are contacting Authorised Advisors when finding more information about applying for a mortgage in the UK. Every financial institution offers this service (e.g. your bank). You can contact mortgage brokers if you want to check a wider option of alternatives from different financial institutions:
  • Please bear in mind all the expenses when buying a property: Solicitor, Conveyancer, Valuation, etc. Set up your saving plan very wisely, including these expenses and your deposit.
  • If you are going to buy your home for the first time (First Time Buyer), you are exempt of “Stamp Duty” if the property value is less than £300,000
  • For Help to Buy, it is highly recommended to look for special advice. You can find it here:
  • If you want further information about other housing schemes, check here:


Written by: Juan Camilo Mayama and Manuela Olarte

Do you want to share information about the Latino Community in the UK? Send an email to:

One Comment

  1. Thanks for providing me good mortgage options.

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