...and Buyers Buying
Linden Homes has welcomed the government’s commitment to help get Britain building with the release of funding under its First Buy shared equity scheme.
The company has been allocated just over £4 million under the second round of First Buy funding – meaning it will be able to offer new home buyers across the country even more affordable options designed to help them onto the property ladder.
First Buy involves the government and housebuilders together providing a 20 per cent loan for new househunters making mortgages more accessible with more competitive interest rates with just five per cent deposit. This latest tranche of funding follows the successful initial phase, which ends in March 2013.
Stephen Teagle, Linden Homes Regeneration and Affordable Housing Managing Director, said: “First Buy will provide hundreds of first time buyers with the confidence that they can make a leap onto the housing ladder. The funding will secure further accessible lending options for those who have worked hard for a five per cent deposit, alongside the government-backed NewBuy scheme.”
He added: “More widely, this funding will provide a significant and much-needed boost to the wider economy. For every home built, 1.5 jobs are created – many of which are for local tradespeople and suppliers in areas where development is undertaken.
“This demonstrates the government’s commitment to finding solutions and we are delighted to be able to play a part in this.”
First Buy allows an eligible buyer to purchase a brand new property, funded by a mortgage secured with a high street lender. The equity share is supported by the HCA and housebuilder, such as Linden Homes, administered through a local HomeBuy agent.
It gives applicants the chance to buy a new home with the assistance of an equity loan. The value of the loan is a maximum of 20 per cent of the full price of the property. The maximum full purchase price is set at £280,000.
First Buy case study
Gymnast couple vault onto the property ladder thanks to First Buy
When a keen gymnast couple found the deposits being asked of them by the banks too much of stretch, they found another way to jump onto the housing ladder – through the First Buy scheme.
Craig Carter (25) and his partner Carly Andrews (21) are now settled into their one-bedroom apartment at The Mallards, a Linden Homes development which overlooks the peaceful Lower Test Nature Reserve on the edge of the New Forest National Park in Hampshire.
Craig, a boat-builder, said: “We would not have been buying a house yet if it were not for First Buy. Most of the banks wanted a ridiculous amount as a deposit. It’s helped us get onto the property ladder much quicker.
“Some banks wanted a £30,000 deposit which was ridiculous. We would have been saving for years and years. We had wanted to get a place for ourselves for a while but we did not want to rent because it’s dead money, we thought.”
Craig and Carly are particularly delighted to be in their own place so early in their lives as, according to Halifax, the average age of a first-time buyer in 2012 was 30, up from 29 in 2011.
“It was six weeks from looking at the property and putting down a deposit to moving in, it was really quick,” explained Craig. “The Linden Homes people really helped us – as first-time buyers we did not know what to do but they explained everything and it was very easy.
“We have recommended First Buy to a few people as it’s such a good way to get on the property ladder.”
Craig and Carly were inspired to take the plunge after a visit to the HomeBuy Show in nearby Southampton. Craig explained: “We wanted a two-bedroom place but we changed our minds when we saw a one-bedroom apartment and realised how big it was. It was more affordable as well for us trying to get a deposit.
“We are tucked away round the corner, it’s nice and quiet and we have nice views of the nature walk just outside the window. The quality of the build is excellent. Everyone who has come round to visit has said the quality is really good.”
He added: “It feels fantastic to be in our own home. It’s lovely that you can do your own decorating and have what you want and have your own space.”
-ENDS-
For further information, contact Lyndsay Scanlan or Claire McCowan at Remarkable Public Relations on 01962 893 893 or email Lyndsay.scanlan@remarkablegroup.co.uk; Claire.mccowan@remarkablegroup.co.uk
References to “we”, “us” or “our” are to the part of the Vistry Group (including Linden Homes, Bovis Homes, Countryside Homes, Drew Smith, Vistry Ventures or one of Vistry’s joint venture companies) from which you are intending to purchase a new home. References to "you” and “your” are to the prospective buyer or buyers of a new home from us.
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