Government Scheme Calculators

💡 First-Time Buyer Tip: Combine multiple schemes for maximum benefit. Example: £250,000 new build property. (1) Use Lifetime ISA: £32,000 saved + £8,000 bonus = £40,000 deposit (16%), (2) Apply for Help to Buy: government lends 20% (£50,000), you need 5% deposit (£12,500), use £12,500 from LISA, keep £27,500 for costs/emergency, (3) Stamp duty: £0 (under £425,000 FTB threshold, save £2,500), (4) Total: buy £250k property with £12,500 deposit (5%), £187,500 mortgage (75%), £50,000 equity loan (20%), £0 stamp duty. Monthly: £187,500 mortgage at 5% = £1,095, equity loan £0 for 5 years, total £1,095/month. After 5 years: equity loan interest starts at 1.75%, rising with RPI+1%. Plan to remortgage or staircase (buy more shares) before interest starts.

⚠️ Stamp Duty Planning: First-time buyer relief only applies if: (1) Never owned property anywhere in world, (2) Property price ≤£625,000, (3) Intend to live in property as main residence. If buying with partner: both must be first-time buyers for relief. If one owned before: pay standard rates. Couples strategy: if one owned before, consider buying in FTB partner's sole name (if affordable on their income alone) to claim relief, then add other partner to title later (no SDLT on gift between spouses). Property over £625k: no FTB relief, pay standard rates. Consider: (1) Negotiate price to £625k or below to qualify, (2) Buy £625k property, negotiate fixtures/fittings separately (not subject to SDLT), (3) Wait and save larger deposit for property under £625k. Additional property surcharge: +3% on all bands if you own any other property (even abroad, even if mortgaged). Exceptions: replacing main residence (sold within 3 years), inherited property (not lived in).

✅ LISA Maximization Strategy: Start early to maximize bonus. Age 18: can save for 22 years (until 40), max £88,000 saved + £22,000 bonus = £110,000 (before growth). Age 35: only 5 years left, max £20,000 + £5,000 bonus = £25,000. Open LISA immediately if planning to buy in next 2+ years (must be open 12 months before first home purchase). Contribution strategy: (1) Max LISA first (£4,000/year for 25% bonus), (2) Then max regular ISA (£20,000/year total ISA allowance, LISA counts towards this), (3) LISA + regular ISA = £4,000 LISA + £16,000 regular ISA = £20,000 total. Investment vs cash LISA: Cash LISA (0.5-2% interest) = safe but low growth, Stocks & Shares LISA (4-7% average) = higher growth but volatile. For 5+ year timeline: consider stocks & shares LISA for growth potential. For 2-4 years: cash LISA for safety. Withdrawal: no penalty for first home under £450,000, 25% penalty for other withdrawals (lose bonus + 6.25% of capital). Example: save £4,000, get £1,000 bonus = £5,000, withdraw early: 25% penalty = £1,250 charge, receive £3,750 (lose £250 of your own money).

💡 Shared Ownership Strategy: Start with minimum share (25-40%) to minimize deposit and monthly costs, then staircase as income grows. Example: £300k property. Year 1: buy 25% (£75k), deposit £7,500 (10%), mortgage £67,500 = £395/month, rent on 75% (£225k) at 2.75% = £516/month, total £911/month. Year 5: income increased, staircase to 50% (+£75k), new mortgage £142,500 = £835/month, rent on 50% = £344/month, total £1,179/month (still less than full ownership £1,580). Year 10: staircase to 100% (+£150k), own outright, no rent, mortgage £292,500 = £1,710/month (but property now worth £350k+). Pros: lower deposit, lower monthly costs, get on property ladder, benefit from appreciation on full value. Cons: pay rent + mortgage, service charges, restrictions on alterations, staircasing costs (valuation £500-1,000, legal £500-1,000), rent increases annually (RPI+0.5%). Best for: first-time buyers with limited deposit, those who can't afford full ownership, areas with high property prices (London, South East).

⚠️ Help to Buy Exit Strategy: Plan to repay or remortgage before year 6 when interest starts. Strategy: (1) Remortgage Year 5 - property appreciated £300k to £330k, remortgage at 80% LTV = £264k (was £225k), use extra £39k to partially repay equity loan (10% of £330k = £33k), reduce equity loan from £60k to £27k, lower future interest charges. (2) Overpay Mortgage - overpay £200-300/month years 1-5, reduce mortgage from £225k to £200k, remortgage at 75% LTV = £247.50k, use £47.50k to repay equity loan in full. (3) Staircase - buy out equity loan in stages (min 10% of property value), reduce interest charges. (4) Sell and Move - sell property, repay equity loan (20% of sale price), use remaining equity for next property. Risks: if property falls in value, still owe 20% of current value (could be less than original loan). If property rises significantly, owe more (20% of £400k = £80k vs original £60k). Interest rises with RPI: if RPI 5%, year 7 rate = 6%, £60k × 6% = £3,600/year = £300/month. Budget for interest from year 6 or plan exit strategy.