Pre-Budget boost for first time buyers

06-Dec-2005

Gordon Brown has released proposals to ensure that aspiring homeowners are not priced out of the property market, with a new scheme to share the cost of a mortgage.

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Under the plans outlined in the pre-Budget report, first time buyers would only have to take out a mortgage for 75 per cent of the house's value, with the remaining 25 per cent covered by the government and the lender.

The shared mortgage scheme, known as Open Market Homebuy, is designed to increase levels of homeownership in the UK and applies to mortgages taken out with HBOS, Nationwide and Yorkshire Building Society.

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

The housing minister Yvette Cooper welcomed the plans and said that too many young people and families found it difficult to find affordable housing.

"That's why it is so important to promote more shared equity schemes to give them a chance to get their first foot on the housing ladder," Ms Cooper explained.

Priority buyers such as key workers, social tenants and other first time buyers will be identified by regional housing authorities and the initiative is expected to start running in October next year.

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