What are home loan grants?

A home loan is generally another name for a mortgage. A mortgage is a term that means a loan is secured against the value of your house. Therefore home loan grants is financial help toward paying a mortgage. The most common type of home loan grants is a first time buyer grant. An example of this in the UK is the First Buy scheme.

The First Buy scheme is part of the Home buy scheme, a programme to help people buy their own home. It is an agreement between the first time buyer, the government and the home builder to pay for the deposit on a house. The government and the home-builder provide up to 20% of an equity loan, that is then repaid when the house is sold. This enables the buyer, who also pays 5% towards the deposit to secure a house with a mortgage and also be able to pay the deposit.

This scheme has so far enlisted the help of over 100 home builders who are offering their newly built homes to first time buyers. Over the next two years the First Buy scheme hope to help over 10,000 first time buyers. With funds of £500 million to help the scheme, homes should be available this September.

To find out more about the scheme take a look at direct.gov.co.uk or if you would like to find out if you are eligible for the scheme check out homebuy.co.uk to find a local Home Buy agent your area.

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