Firstbuy scheme launched to help first-time buyers
Published ¤ 20/06/2011 13:37:45
The government today launched "Firstbuy", a new scheme aimed at helping first-time buyers to get a foot on the property ladder.
The scheme provides first-time buyers with an "equity loan" of up to 20% of the purchase price of a home, from the government and housebuilders. This means that the buyer only needs to find a 5% deposit, and wil then qualify for mortgage normally only available with a 25% deposit.
The Government will make £500 million available across the UK over the next two years to fund FirstBuy, which it is expected will help some 10,000 people in England alone to secure their first home.
Over 100 housebuilders have signed up to the scheme so far. And a number of banks have indicated that theu will offer the 75% LTV mortgages, including Halifax, Nationwide, and Woolwich (Barclays).
Many first-time buyers have had to rely on help from their parents recently, in order to secure their first home due to the need for large deposits.
Housing Minister Grant Shapps said: "With 80% of young first-time buyers depending on parental help, I am determined that we pull out all the stops to help those who want to take their first steps onto the property ladder."
The "equity loans" will not need to be repaid until the property is sold, with the Government's share available for reinvestment in more affordable housing.
If you are thinking of buying your first home, and think it is unaffordable, contact PKS to discuss your options. PKS, one of Hampshire's top independent mortgage and insurance brokers offer "truly" independent advice, and will ensure you get the right mortgage to meet your needs.
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