31 May 2021
First Home Schemes
The First Homes Scheme is a new Government initiative that starts on 28th June 2021, however, seeing as the homes that qualify for these schemes are still yet to be built it is unlikely we will see any completions until 2022.
The scheme aims to allow first-time buyers the ability to purchase new build homes at a discount of 30% but depending on the council could be up to 50% of the purchase price. The primary objective is to help those unable to afford properties in their local area to purchase and remain living near friends, family, or close to where they work.
The maximum purchase price across England will be £250,000 rising to £420,000 in London boroughs. To qualify both applicants will need to have never owned a property before and have a maximum income of £80,000 (£90,000 in London). Although the scheme is open to all that qualify, those in certain professions such as key workers and serving armed forces personnel will take priority.
From a mortgage perspective, the Government has encouraged lenders to support this scheme offering them assurances similar to the help to buy scheme. This means lenders are likely to offer lower interest rates drastically reducing the cost of ownership for these properties. I will of course let you know when these properties start to become available and provide more information on your mortgage options.
For more information contact us today talk to one of our mortgage specialists!