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Get on the property ladder with a government buyers deposit

Announced in late March, the British government has introduced a brand new scheme that will help certain first time buyers make the first steps onto the property ladder thanks to some much needed financial support. Given the huge pressure that was placed upon buyers to find the money for massive deposits following the collapse of the financial sector in 2008, the effects of which are still being very much felt today, many people found it was simply not affordable to even so much as consider buying their first property.

Thanks to the brand new government buyers deposit scheme however, these concerns may be a thing of the past for as many as 10,000 first time buyers.

The scheme promises to offer couples and families whose income is less than £60,000 year the chance to take out a 75% loan to value mortgage with a deposit as low as 5%. This is made possible by the government forking over 10% of the deposit cost, while the other 10% of the bill is to be footed by homebuilders involved in the scheme.

The money will be put forward as an equity loan, and will be completely interest free for an initial five year period. It will then rise to 1.75% in the sixth year, before settling at an annual amount of 2.75% plus any rise in inflation from year seven onwards.

In addition to kick-starting the housing market, the government is hopeful that this new scheme can also help reinvigorate the home construction industry, creating and supporting as many as 50,000 jobs.

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