Partner Article

Government help for first-time buyers

The government has announced new measures to encourage first-time buyers and key workers to participate in its affordable housing schemes.

There will be £1,500 grants to help qualifying buyers with costs such as solicitors’ charges and furniture. The government said more than £3m has been allocated for the grants - enough for 2,000 people. The grants are to run in conjunction with a part-buy scheme offered to key workers and certain first-time buyers.

The grants will be offered to buyers who take part in the government’s Open Market Homebuy scheme (OMHB). Under the OMHB, qualifying buyers take out a mortgage for a percentage of their home and then another loan - known as a shared equity loan - from the government and lenders to pay for the balance.

Under the scheme, key workers - including nurses and police - can increase their buying power by up to 50% following the launch of two new shared-equity mortgage products announced in the Budget.

A household with an income of £32,000 could afford a house of £200,000, paying £760 each month - as opposed to £1,350 without the scheme.

Prime Minister Gordon Brown said: “I want key workers, nurses like Zoe and teachers, for example, to be able to get a foot on the property ladder. Shared equity housing schemes make that possible.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .