David Cameron pledged 200,000 more starter homes in his closing speech at the Conservative Party conference.
In what he called a ‘dramatic shift in housing policy’ the new rules mean that builders no longer have to offer low cost rental homes in new developments.
Instead, they will be able to offer homes to first time buyers under 40 at a discounted price – up to £250,000 outside London and £450,000 inside London.
No doubt this will be welcome news for many aspiring young homeowners who haven’t been able to get a foot on the ladder due to high house prices and the huge deposits required.
If you’re a first-time buyer, there are lots of ‘Help to Buy’ mortgage schemes out there right now.
Typically they require you to:
- Have a deposit of between 5% and 20% of the house value (5 year interest free equity loans are also available to help you get a larger deposit together).
- Repay the capital (interest only deals are not included)
- Prove that you intend to live in the house most of the time (buying to let as a second home is not permitted).Regardless of whether you’re participating in the government scheme or not, let one of our experts guide you through the mortgage maze and find the right deal for your needs. 0800 970 179507702 312259
- In more cautious times, lenders have only been willing to participate in the scheme because the government will guarantee up to 15% of the value of the mortgage if the borrower defaults on a payment.