Buying a home in London is no easy feat, especially for first-time buyers. But for Jan and Helen, two nurses with a combined salary of £52,000, the dream became a reality thanks to a “life-saving” government scheme. In 2022, they moved into their three-bedroom apartment in Kingston, London, overcoming financial challenges with careful planning and a bit of help from the government.
Saving Smart with the Help to Buy Scheme
Jan, 40, and Helen, 37, had always been savvy with their finances, but affording a £575,000 home seemed daunting. Typically, buyers need at least a 10% deposit, which would have been £57,500 for their property. However, the couple leveraged the government’s Help to Buy Scheme, allowing them to put down just 5%—approximately £28,000. The scheme also provided an equity loan covering up to 20% of the home’s value (40% in London) interest-free for the first five years.
Maximizing Bonuses with Help to Buy ISA
In addition to the Help to Buy Scheme, Jan and Helen opened a Help to Buy ISA in 2019, saving £6,000 over two years. The government matched their savings with a £1,500 bonus, adding a significant boost to their deposit. Although this particular ISA has closed to new applicants, the Lifetime ISA offers a similar benefit, providing a 25% bonus on annual savings up to £1,000.
Paying Off Early and Saving Big
The couple’s financial discipline didn’t stop there. By making overpayments of £1,000 per month on their mortgage, they are set to pay off their home nearly two and a half years early, saving £16,570 in interest. Most lenders allow up to 10% of the outstanding mortgage balance to be overpaid each year without incurring penalties, making this strategy a smart move for the pair.
Cutting Expenses and Working Overtime
Their journey wasn’t without sacrifices. Jan and Helen cut out all luxuries, worked overtime during the pandemic, and focused on saving every possible penny. Their determination not only helped them secure a home but also set them on a path to financial freedom much earlier than anticipated.
Learn More About Their Journey
For a more in-depth look at how Jan and Helen managed to turn their homeownership dreams into reality, check out the full story on The Sun’s My First Home series.
By exploring government schemes and making smart financial decisions, they’ve shown that owning a home in London isn’t just a dream—it’s a goal that can be achieved with careful planning and determination.