Buy your first home with FirstBuy
Following on from the recent success of HomeBuy Direct, FirstBuy* is a new government led equity loan scheme offering up to 20% of the purchase price of your new home.
Aimed at helping buyers onto the property ladder, the scheme will enable first time buyers to secure a conventional mortgage by paying a smaller mortgage deposit.
There are some basic qualifying criteria for the scheme:
- Your household income is less than £60,000 per annum
- You can't otherwise afford to buy a home in your area
- You are buying a new home for you and your family to live in
Availability under the scheme will be limited and, due to its popularity, offered strictly on a first come first served basis to eligible applicants.
How does the scheme work?
Eligible applicants will be offered an equity loan of up to a maximum of 20% of the purchase price (based on the open market value). The registered provider will hold the second charge on the property. Applicants are required to fund at least 80% of the purchase price by means of a conventional mortgage, savings and any deposit where required. Applicants must obtain their conventional mortgage from a Qualified Lending Institution. For the first five years there is no fee charged on the equity loan component. At the start of year six a fee is collected of 1.75% of the market value of the property at the time the loan is entered into multiplied by the outstanding percentage under the equity loan, the annual fee of 1.75% will be uplifted by RPI +1% p.a. The equity loan is provided by the Homes and Communities Agency and Linden Homes as a second charge.
For more information please ask your Sales Executive or click here to download our FirstBuy leaflet or visit homesandcommunities.co.uk/firstbuy
Click here to view our Terms & Conditions.
What if I'm not eligible for FirstBuy or there are no homes available in my area?
Our recommended mortgage advisor, New Homes Mortgage Helpline, will advise you on our other first time buyer schemes most suited to your personal finances. You can also view our current range of offers and incentives now by clicking here
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
*Available on selected homes only subject to FirstBuy terms and conditions and only available to customers where a primary mortgage is required to secure the purchase
