Budget bonus for first-time buyers
THE Budget brought good news for first-time buyers with a new shared equity scheme. The Firstbuy scheme is for newly-built homes and buyers must save a deposit worth five per cent of their property’s value, with the government and housebuilders putting up 10 per cent each through an equity loan, enabling people to qualify for a 75 per cent loan-to-value mortgage. The equity loan would be interestfree for the first five years, with interest charged at 1.75 per cent in year six, and at inflation plus one per cent thereafter. The £250m government pledge will only last for one year. The Budget also revealed that the Support for Mortgage Interest scheme, will be extended for another year from January.