Homebuy schemes expanded to help first time buyers

The Government has expanded its Homebuy programme to help more first time buyers get on to the housing ladder.

The system works by providing buyers with equity loans of up to 50% of the value of the property. The buyer provides the rest of the money by traditional methods such as a mortgage. The advantage is that there is no interest to pay on the equity loan and it can be repaid at market value when the property is eventually sold.

There are two schemes on offer. MyChoiceHomeBuy provides equity loans of between 15% and 50% of the purchase price. The Ownhome scheme provides equity loans of between 20% and 40%.

In the past, the programme has only been available to key workers such as nurses, teachers and social housing tenants.

Now it is being expanded to all first time buyers with a household income of £60,000 or less. A Government statement points out that the money can be used to boost your buying power. “For example 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.”

Both schemes are funded by the Government in partnership with various housing associations and other organisations.