Scheme launched to help first-time buyers
Monday 20 June 2011
A new scheme aimed at helping first-time buyers to get a foot on the property ladder was launched by the Government today.
FirstBuy will see the Government and housebuilders provide buyers with an equity loan of up to 20%, meaning potential buyers will have to put up a 5% deposit to qualify for a 75% mortgage.
The Government will be making some £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.
Some 100 housebuilders have signed up to the scheme so far, including Permission, Barratt, Bovis and Galliford Try.
Meanwhile banks who have signed up to offer the 75% mortgages include Halifax, Nationwide, Barclays and the Melton Mowbray building society.
Young buyers have been increasingly turning to financial help from their parents 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."
Loans will be repaid on resale of the property, with the Government's share available for reinvestment in more affordable housing. The first homes are expected to come on stream in September this year.
Life & Style blogs
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
- 1 Planes go hybrid-electric in important step to greener flight
- 2 Antonio Martin shooting: Mayor says there should be 'no comparison' to Ferguson
£20000 - £35000 per annum: Recruitment Genius: This full service social media ...
£24000 - £35000 per annum: Recruitment Genius: We are 'Changemakers in retail'...
Very Competitive: Austen Lloyd: Senior Conveyancer - South West We are see...
Excellent Salary: Austen Lloyd: DORSET MARKET TOWN - SENIOR PROPERTY SOLICITOR...