New equity loan to help first time buyers

The government announced last week the launch of a new scheme to help first time buyers, FirstBuy HomeBuy.

The scheme is designed to help those struggling to buy a home, and works in a similar way to HomeBuy Direct. If you qualify for help, you could receive a equity loan of up to 20% of the property value, with nothing to pay for the first 5 years. This will be available on new build properties only.

In year six, a fee is collected of 1.75% of the market value of the property at the time the loan is entered into, multiplied by the outstanding percentage under the equity loan, rising after year 6 at RPI + 1% p.a.

The equity loan is part funded by the government, and part funded by the developer.

We are now awaiting details of where this new scheme will be offered throughout Merseyside and Cheshire. In the meantime, we urge anyone who is interested to consider the HomeBuy Direct properties, details of which are currently available through our property search. HomeBuy Direct works in exactly the same way, but you could receive up to 30% equity loan through the scheme.  See our helpful links section for a brochure.

If you have any more questions on this, please contact us