A deal worth more than £400 million to help first time buyers aspiring to buy their own home was approved today by Housing Minister Margaret Beckett, as part of the Government’s programme of action to tackle current difficulties in the economy.
More than 130 developers have agreed to offer the HomeBuy Direct scheme which will help up to 18,000 first time buyers to purchase a home at sites across England aided by an equity loan, part funded by the Government and the developer. The equity loan, which will be free of charge for five years, can be used as a deposit and can cover up to 30 per cent of the purchase price.
This means a first-time buyer could purchase a house worth £180,000 for as little as £126,000. As with other HomeBuy schemes, any first-time buyers whose household income is under £60,000 who cannot otherwise afford to buy will be able to apply.
The scheme will also support the house building industry by identifying buyers for their new homes, helping them to weather the current difficult conditions in the market.
Eligible first time buyers will be able to apply for the scheme from early 2009 by contacting a HomeBuy agent in their region.