100% Mortgages for First Time Buyers
The governement has announced an extra £100 million will be pleged to tempt up to 18,000 First Time Buyers to buy empty new builds. Forming part of the Government’s £400 million HomeBuy Direct scheme, households with incomes less than £60,000 are helped to purchase new homes sitting empty after the housing bubble burst.
- 15% of the value of the property will be lent by the Government and 15% by participating property developers
- Interest on the loan doesn’t kick in for 5 years
- If the property value decreases, when the owner sells, the 30% loan will not have to be paid back
- If the property value increases the homeowner must repay the loan but can keep any profit
Experts welcomed the announcement, but are warned it must be combined with wider measures to help first time buyers get on the property ladder.
Housing minister Margaret Beckett said: ‘We are determined to give families real help in the current economic climate.’
But critics said that the government risked driving thousands of young home buyers into negative equity pointing to predictions that house prices will still continue to fall into next autumn.
Read more…
A 100% home loan on taxman - Metro.co.uk
Government announcees £100 million for First Time Buyers - Telegraph.co.uk
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