Last week the prime minister announced a new housing strategy designed to make buying and renting homes in England easier.
The main initiatives include:
A mortgage guarantee scheme designed to encourage lenders to offer 95% mortgages to buyers of new homes.
An increase in developers’ subsidies relating to the ‘Affordable Homes Programme’.
A scheme whereby funds from the sale of council houses are reinvested into the creation of new council homes.
Incentives to encourage councils to take over and renovate neglected homes which have been empty for a long period of time.
The government said these plans would “tackle the housing shortage, boost the economy, create jobs and give people the opportunity to get on the housing ladder”.
The mortgage guarantee scheme mentioned above certainly is interesting and will basically guarantee lenders against their losses if certain borrowers fail to repay their loans. The purpose of this is to encourage lenders to offer mortgages to potential buyers of newly-built properties who have as little as 5% deposit.
The details of these proposals are yet to be finalised however, there are government schemes available now that allow first time buyers with a household income of £60,000, or less, to buy with just a 5% deposit.
This scheme, labelled FirstBuy, is effectively an equity loan provided by the Government and the house builder. The value of the equity loan can be up to 20% of the property price and there will be no fees charged on the loan for 5 years. This means that with FirstBuy it is possible to move with just a 5% deposit.
If you are think you may be eligible for the FirstBuy scheme, take a look at the type of properties you may be able to purchase below. To book a Firstbuy appointment, call 01908 854 436.
|This 2 bedroom brand new property located in Coventry enjoys pride of place in a rural community.|
Contemporary, stylish and ideally located, this home has 3 bedrooms and is situated on Slater Lane in the town of Leyland only a few miles outside of the city of Preston.