Government First Time Buyer Deposit Scheme
Published / Last Updated on 21/06/2011
Government First Time Buyer Deposit Scheme.
In order to help first time buyers onto the property ladder, due to needing to have substantial deposits, Grant Shapps, Housing Minister) has devised a scheme (new First Buy scheme).
The scheme is devised so that first time buyers offer a 5 per cent deposit towards the property and the house builders and the Government jointly present an equity loan in the region of 20 per cent, which will enable the purchaser to obtain a mortgage of 75 per cent on the remainder of the premises.
On the sale of the property purchased, the Governments part of the loan would be available for less expensive housing and the loan would be repaid to the lender.
It is hoped that this scheme would help 10,000 first time buyers in England alone, during the next couple of years, achieve their goals and own their own property. It will also help the building industry in creating many jobs.