Sunday, March 22nd, 2009
The Government and property developers are making £400m available to help first time home buyers.
The figure is £100m more than originally planned and has been increased to meet the worsening economic climate.
The money will be distributed through the HomeBuy Direct scheme and should enable 18,000 people buy a home for the first time.
The scheme works by offering buyers an equity loan which can be used as a deposit and cover up to 30% of the purchase price. The loan is interest free for five years. The buyer provides the rest of the money by traditional methods such as a mortgage. The equity loan can be repaid at market value when the property is eventually sold.
The scheme is funded by the Government and 130 developers across the country. The equity loans would enable a person to buy a £180,000 house for as little as £126,000.
The loans are available to first time buyers with a joint household income of less than £60,000.
The scheme will hopefully help many people who might not otherwise be able to buy their first home. However, buyers should also ensure that they consult a solicitor to deal with the legal aspects of the purchase to ensure that all the necessary procedures are followed correctly.
Please contact Sophie Warren if you would like more advice on any aspect of buying or selling a home.
The list of sites containing homes available under the HomeBuy Direct scheme can be found at: http://www.homesandcommunities.co.uk/
© Copyright 2009 Burt Brill & Cardens Solicitors