UK Budget : The Chancellor George Osborne has today confirmed plans to help first time buyers get onto the property ladder with the promise of a £250 million cash injection to support first time buyers buying new builds.
The shared equity scheme to be known as ‘Firstbuy’ is scheduled to help 10,000 first time buyers buy a new build property.
Households that earn less than £60,000 a year and which can raise a deposit of at least 5% of the property price may qualify for a loan of up to 20% of the property value. The loan will be interest free for five years, with a rate of interest of 1.75% charged in year six and thereafter the interest rate will be the Retail Prices Index inflation measure plus 1%.
The loans must be paid back when the property is sold or after 25 years, whichever is sooner. Each time a portion of the loan is repaid, the property is re-valued and if the property has increased in value, the percentage share of the debt will also increase.
If you are thinking of buying your first home, please contact our Residential Property Department on 028 90 231770 to obtain a special first time buyer conveyancing quote.