Wed, 09 Nov 11
FirstBuy is an affordable housing Equity Loan product from the Homes and Communities Agency (HCA), working in partnership with house builders all over the UK.
The scheme is intended for households who have experienced difficulty in buying a property on the open market, due to the large deposits required for mortgages. These individuals can now receive additional government assistance in purchasing a new home with the FirstBuy program.
Under the scheme the government and house builders provide an equity loan as follows:
- Government and house builder provide equity loan of 20%
- You arrange a mortgage for 75%
- Meaning your deposit is 5%
Many developers advertise plots which are eligible for FirstBuy, and these can be found by searching for new homes for sale.
To be eligible for a FirstBuy property, individuals must:
- Have a household income of less than £60,000
- Be a would-be buyer unable to afford a suitable home in their local area
- Be able to demonstrate access to savings or funds to pay, if required, a deposit (which may be 5% or more of the purchase price, legal fees, stamp duty and costs of moving)
- Not already be home-owners or named on a home mortgage
- Have a good credit history
- Take out a first mortgage with a qualified lender (e.g. a bank or building society)
The Government FirstBuy scheme is available only from approved, participating house builders, is available until March 2013.
Further details of the FirstBuy scheme and can be found in the FirstBuy Buyers Guide.
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