What is FirstBuy?
FirstBuy - Designed to aid First Time Buyers in times when mortgages are at their hardest to secure. The newest government First Time Buyer scheme provides assistance with the initial deposit and makes getting onto the property ladder more affordable.
It's an affordable equity loan product funded between the HCA (Homes and Communities agency) in partnership with New Homes builders across the UK. Created to assist FTB's, (First time buyers) by funding their initial deposit on a wide variety of homes.
- 20% equity loan funded through government and new house builders.
- You require a reduced 5% deposit.
- 75% mortgage arranged by you.
Are you eligible for FirstBuy?
- You have a household income of less than £60,000.
- You are a FTB, unable to afford a suitable home in your local area.
- You can demonstrate the ability to fund a 5% deposit and cover associated legal and moving costs.
- You are not named on any other mortgage.
- You have a good credit history and can arrange a first mortgage with an appropriate lender.
Over 10,000 first-time buyers are expected to be helped by £250m in equity loans, this loan will be interest-free for the first five years, with interest charged at 1.75% in the sixth year, and at RPI inflation plus 1% after that.
The Governments FirstBuy scheme is available only from certain participating house builders. You can see the full list of qualifying properties available via Zoopla here.