Firstbuy Boosts Sales Of New Home Developments

By Author: Gareth Hoyle
Total Articles: 675
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With many British residents finding it difficult to make ends meet,owning a property can seem like a far away dream to many young people.Since the credit crunch there are very few mortgage lenders offering large percentages of mortgage value, and buyers are being asked to find up to 20 o 30% of the house value as a deposit before they will even be considered. Raising tens of thousands of pounds can take years without parental assistance, and could see new home developments standing empty with nobody ready to buy.

Government help

Thankfully the government has stepped in with a new scheme to assist first time buyers in getting together that all-important deposit on there first home. The FirstBuy scheme is seeing the government putting in a grand total of £250M to help around 10,000 first time buyers secure that mortgage with an interest free equity loan. As part of the scheme, builders of new home developments are required to match the governments contribution with an interest free loan of their own, which will see total of 20% of the property value being offered up to mortgage lenders, along with around 5% of the ...
... buyers savings.

Restrictions

This scheme is designed to help people who, through no fault of their own, have been priced out of the property market. It is not designed to help people who refuse to help themselves, and therefore is only available to people who already have a 5% deposit saved up. It is also not designed for people who can afford to save a deposit but just haven’t bothered yet, as it is only available to householders will an annual income of less than £60,000.

Parental help

Parents have always tried to help their offspring to get a first for on the property ladder, with an estimated 80% of first time buyers getting some form of assistance with the deposit on a house. However, with higher depostis required by lenders and the much higher price of houses, many parents are finding that the help they have on offer is jut not enough. This scheme will hopefully boost sales of new home developments and get more young people into suitable, modern accommodation and into the housing market for good.