The first time buyers initiative

This scheme enables first time buyers, who cannot otherwise afford to buy a new home, to purchase a new property with an affordable mortgage (a minimum 50% share of the total purchase price.) The government contributes the remaining share.

For the first three years of FTBI home ownership there is nothing to pay on the amount which the Government contributed.

After three years, buyers will pay a fee to Government (through HomesHub) of one per cent per annum on the amount Government funded. This fee will increase each year by a fixed percentage reaching a maximum of three per cent after five years in the property.

Because it is made affordable, FTBI is a "stepping-stone" to assist buyers into full home ownership.

When owners sell their FTBI home, they will repay Government's contribution by way of a share of the sale proceeds. So if Government initially assisted the purchase with a 25% contribution, the repayment will be 25% of the total property value when it is sold.

FTBI homeowners can also choose to reduce the amount payable to Government at any time by making repayments at the prevailing market value. The minimum additional repayment is ten per cent of the market value. Repayments will reduce the Government's entitlement to a share of the future sales proceeds and also the fees payable by buyers after three years of ownership.

Who can apply?

Anyone who cannot afford to buy a suitable home on the open market and is a first time buyer can apply.

Around fifty per cent of the homes to be made available through the initiative will be for key workers such as nurses, teachers and police officers living across England. The remaining homes will be available to those who are eligible.

For certain groups, a maximum household income of £60,000 will apply. Lower limits may apply to other eligible groups. Priority will be given to people currently in social/private-rented or temporary accommodation.

As well as being in an eligible group to purchase, applicants for FTBI homes must be able to demonstrate access to savings or sufficient funds to cover the costs of buying which will include solicitor's fees, stamp duty, a reservation fee and typically a 5% deposit.

The above information is a broad outline of the scheme, the amount of mortgage or grant funding obtained by each applicant will depend on individual circumstances. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

To apply click here

If you have any queries contact us

Or search for a property