Sutton Kersh has welcomed a new Help to Buy scheme announced in the latest budget aimed at helping people to buy their own house.
Help to Buy improves on a previous scheme known as FirstBuy and requires buyers to put down a deposit of just 5% on a newly built house.
Up to 20% of the home is funded by a ‘shared equity’ loan, which will be repayable when the home is sold. That loan will be interest free for the first five years.
At the end of the five year period borrowers will have to pay a 1.75% annual fee, which will then rise by 1% above the Retail Prices Index (RPI) measure of inflation. The remainder is paid through a standard mortgage.
Unlike the FirstBuy scheme which was only available to first time buyers, Help to Buy applies to all buyers of newly built homes, up to the value of £600,000.
The previous income limit of £60,000 will no longer apply and borrowers will be able to apply from April 1st this year.
James Kersh, Managing Director of Sutton Kersh said: ‘This could be just the shot in the arm the housing market needs.
‘It is particularly good news for first time buyers who have found the large deposits required in recent years to be the major deterrent to owning their own home.’