The Government has announced a package of new measures to support first-time buyers into affordable home ownership. Grants will be available to help qualifying buyers with costs such as legal fees and furniture. Over £3million has been allocated for the grants, enough to help two thousand people.
New cash grants of £1,500 will be offered to buyers who take up a shared equity loan under the Government’s Open Market Homebuy Scheme (OMHB). To help increase the long-term housing supply, the Government is confirming the locations of surplus public sector land sites that will provide 30,000 new homes, many of which will be affordable.
Under OMHB, key workers can boost their purchasing power by up to 50 per cent following the launch of two new shared equity mortgage products. This means a household with an income of £32,000 could afford a house of £200,000, paying £760 each month. Under this scheme, qualifying buyers take out a mortgage for a percentage of their home and then another loan (known as shared equity loan), from the Government and lenders to pay for the balance.
Housing Minister, Caroline Flint said, “We urgently need to meet the challenges of building more homes. Our plans for public land, and tougher building regulations, means we can deliver the homes our young families and first-time buyers desperately need, whilst protecting and maintaining the environment. It is important that we look at what more can be done to support households most at risk from the4 impact of the global credit crunch, working closely with the Council of Mortgage Lenders.”
Related articles by Zemanta
- Need for big deposit hits home sales hard (telegraph.co.uk)
- ‘Sharp fall' in first-time buyers (bbc.co.uk)
- First-home buyers missing ‘deal of a lifetime' (telegraph.co.uk)