Government unveils HomeBuy for first time buyers

12-Aug-2005

HomeBuy, the government's scheme designed to increase the number of first time buyers getting on the property ladder, has been fully launched.

Click here for our first time buyers guide to buying a property

Under the plans, aspiring homeowners will be able to buy a percentage of a home rather than pay the full cost, with a housing provider making up the difference.

The move is designed to encourage more first time buyers into the market by making it easier for them when finding a mortgage through the development of a state-sponsored shared ownership scheme.

Click here to learn more about joint ownership, buying with friends or family

When a home bought under the new scheme is sold, the buyer will receive the same percentage of the value of the property as they own, so that if the seller owns 65 per cent of the property, when it is sold they would receive 65 per cent of the sale price, with the rest going to the housing provider.

Launched by the Office of the Deputy Prime Minister (ODPM), the plans will have three strands, and become available to aspiring first time buyers in April 2006.

Social HomeBuy will enable social tenants to purchase the property in which they currently reside, while New Build HomeBuy allows first time buyers to obtain a share of newly-built property.

Finally, Open Market HomeBuy will provide aspiring homeowners with the opportunity to buy a property on the open market with the help of an equity loan.

See what’s in our unique, comprehensive and detailed joint ownership guide

Click here to find out about the finances of borrowing with friends, to find out how much you can borrow together and what it will cost you

If you want to post your comments on today's news in the FirstRung Forum click here

2008: May | Apr | Mar | Feb | Jan

2007: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2006: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2005: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar