First-time buyers to get a leg-up to the property ladder

Tuesday, 21 June 2011 11:59

Housing minister Grant Shapps has unveiled the latest attempt to help first-time buyers get on to the property ladder.

FirstBuy is part of a series of schemes designed to reduce the amount of deposit buyers need to raise, as well as providing equity to cover the cost of their new home which can later be bought back to give them full ownership.

United under the HomeBuy banner, the government initiative also offers advice to members of the Armed Forces on purchasing a property of their own, along with related schemes like rent-to-buy.

The FirstBuy scheme is specifically aimed at first-time buyers who might otherwise find it impossible to scale the property ladder and comprises a five per cent deposit from the buyer, a 20 per cent government equity loan and a 75 per cent mortgage.

Mr Shapps says: "With 80 per cent of young first-time buyers depending on parental help, I am determined that we pull out all the stops to help those who want to take their first steps on to the property ladder."

Up to 10,000 people across England are expected to benefit from the initiative in the coming two years, with £500 million available in place of informal loans from family members such as parents.

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