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FirstBuy – a Government assisted deposit mortgage scheme for first time buyers

Are you daunted at the prospect of having to save for a huge mortgage deposit? Well, you might be interested to know more about FirstBuy.

FirstBuy is a Government assisted mortgage programme, designed to help people get a foot on the property ladder.

Through the scheme, the Government – together with house builders – will offer a 20 per cent equity loan towards a 75 per cent mortgage, which means that first time buyers will only need to provide a five per cent deposit to make up the difference.

The loans will only have to be repaid when the homeowners eventually sell their property – with the Government's share available to be reinvested in more affordable housing.

At the moment, more than 100 construction companies, including Barratt Homes, Persimmon, Bovis and Taylor Wimpey, have signed up to take part by offering new build homes for the programme.

Many major lenders are also supporting the Government assisted deposit mortgage plan, including the Halifax, Nationwide, Barclays and Melton Mowbray Building Society.

It is estimated that FirstBuy could help more than 10,000 people across the UK in its first two years, as up to £500 million is to be put aside to fund the programme.

To be considered for the scheme, you must be a first time buyer and have a household income of less than £60,000 a year.

Homehunters who want to register their interest in FirstBuy should contact their local HomeBuy agent at homebuy.co.uk, who will provide full information and advice on how to apply.

 

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