New Government Plan To Give Boost To First Time Buyers
Many experts are saying at the moment that there has never been a better time to think about buying a new house, property prices have fallen over the course of the last twelve months to almost affordable levels and with the recent reductions in the Bank of England base rate of interest, many home owner loan and mortgage products have become significantly cheaper in their monthly cost.
The main problem which now faces first time buyers in particular is that of being able to get a home owner loan to buy the property and save up a suitable level of deposit. There are plenty of competitive loan products out there on the market, but the days of a 95 per cent loan to value seem to have gone for good and the biggest problem first time buyers now face is that of saving up a deposit in the region of 30 per cent of the purchase price.
In a bid to get first time buyers back into the housing market and also to assist builders and developers, the Government, in a joint venture with developers, has launched what it has called the HomeBuy Direct Scheme, which offers an equity loan of up to 30 per cent of the purchase price of a house to first time buyers who are earning less than £60,000.
The loans will be available to purchase properties at specific development sites across the UK and will be interest free for the first five years.
Margaret Beckett, the housing minister said, “For many young families who aspire to own a home, the difficulties in the housing market have made the step on to the property ladder that bit harder. This deal will give them more support and put their dream of becoming home owners within reach. At the same time, this scheme will also help developers to weather the tough times in the market, by protecting jobs and helping to keep business going.”
