All about FirstBuy

October 11, 2011

In June, the Government launched its latest affordable home purchase scheme under the HomeBuy brand – FirstBuy. The scheme aims to enable over 10,000 first-time buyers to make that all-important purchase and pick up the keys to their own home over the next 2 years.

But how does it work?

The scheme provides an equity loan of up to 20% of the purchase price of a specific new-build property. This equity loan is funded equally by the Government and the property developer, and the purchaser is required to raise the other 80% by obtaining a mortgage and, in most cases, providing a small deposit. Developments all over England and Wales have been successful in their bids to acquire FirstBuy funding, and to find out about relevant developments in your area, contact your local HomeBuy agent.

Contact details for all of the HomeBuy agents can be found on the Homes & Communities website.

Who is eligible?

Eligibility is based on a household income of £60,000 or less and applicants will also be subject to an affordability check to assess the size of mortgage and equity loan they are able to afford and sustain. Once accepted onto the scheme, applicants will be invited to choose a FirstBuy property.

Help for teachers

If you are a teacher and would like to know more about the scheme, you can call Teachers Building Society on 0800 378 669 or use the online contact form. We support FirstBuy and have mortgage products available for up to 80% Loan-to-Value, meaning a deposit may not be required. Click here for more information about our FirstBuy mortgage products.

Our experienced and friendly team of mortgage consultants is ready to discuss your circumstances and assess affordability, and can point you in the direction of your regional Homebuy Agent so that you can find out more about the specific properties available in your area. We treat our customers as individuals, assess each case on its own merits and have a long history of dealing with such government schemes.

Please note: mortgages from Teachers Building Society are also available to all in the BH & DT postal areas (Dorset).

What about selling?

If you purchase a property via the FirstBuy scheme and later need to sell it to relocate or upsize, the home can be sold on the open market. Upon completion, the equity loan would be repaid by way of a share of the proceeds. If the value of the property has increased by the time of sale, you, the developer and Government will all share in this increase. If the value of the property has gone down, the Government and developer will only share the sale proceeds left over once the mortgage has been repaid.

For more information, call the mortgage consultancy team at Teachers Building Society on 0800 378 669 or visit the Homes & Communities Agency website.