Monday, June 20, 2011
â€œFirstBuy â€“ a government-backed schemeto offer a valuable alternative to the Bank of Mum and Dad”
Housing minister Grant Shapps has launched the governmentâ€™s FirstBuy scheme and confirmed that over 100 housebuilders will be taking part. The scheme was announced in this yearâ€™s Budget and aims to help first-time buyers get on the housing ladder by providing a 20% equity loan from the government and a housebuilder, which together with a 5% deposit from the borrower will allow them to take out a 75% LTV mortgage. Loans will be repaid on resale of the property, with the governmentâ€™s share available for reinvestment in more affordable housing. The first homes are expected to come on stream in September this year.