With 2006 drawing to a close, house prices have increased beyond the reach of many first time buyers. Now, a new government backed scheme has been lauched that will help many first time buyers by receiving an equity loan of up to 25% from the value of the property.
This scheme will enable first time buyers to purchase 75% of a property of their choice on the open market. The remaining percentage is funded through an equity loan. A charge will be introduced after the first five years of ownership. The loan is repayable at market value when the property is sold.
To be eligible, you need £2,500 to cover the cost of buying, the household income to be less than £60,000, have current debts of less than £15,000 (excluding any student loans or mortgages), need to be employed or if self employed to have at least two years accounts and good credit.
James Scollard at Clifftons estate agents in Bournemouth comments “The schemes are aimed at first time buyers and key workers. It helps towards getting a foot hold on the property ladder to people that cannot quite afford to buy a property on their own.”
For further information on the scheme, please contact Clifftons Estate Agents on 01202 789699.
Posted: 21st December 2006