FirstBuy Scheme Explained
There are various good things that have been done of late to help first-time buyers along the way. If you've read our article on Stamp Duty for instance, then you'll know that first-time buyers (at time of writing) don't have to pay a penny on any property purchase up to £250,000.FirstBuy is a scheme that enables a first-time buyer to purchase a new property, with a mortgage that's affordable and also with assistance from a house builder that is a member of the scheme and a homebuy agency.
Basically what the FirstBuy scheme offers is the help of an equity loan to help you to buy a new house. That loan can be up to 20% of the price of the property that you purchase, and the property itself can be up to £280,000 in value.
There is no interest to pay for the first five years on the loan, although there is after that. You will need to have some savings if you want to purchase through the FirstBuy scheme, but because the scheme pays the agreed percentage of the purchase price of the property, then you'll need less than you would ordinary to cover a straightforward deposit of, say, 10%. So if you think for instance that there is no way you'd ever be able to get on the ladder as you could never save 10% deposit amount on a home, then FirstBuy could definitely be for you - you might only need a 4% deposit to be able to get a home!
if you want to find out more about the FirstBuy scheme, the steps that are involved, and indeed whether you would be eligible, or generally just to get more information on it, then the best idea is to go to the First Buy website: you can do so at the First Buy Scheme website.