July 25th, 2021. Jamie Williams
What is the First Homes Scheme?
For many people, the thought of owning a home in their community will seem like a distant dream. Unless you come from a wealthy background, have been gifted a significant amount of money or have a large amount of savings, then the average income often can’t support a first-time buyer mortgage. That’s where the First Homes Scheme comes in.
About the First Homes Scheme
The First Homes Scheme is a way of helping first-time buyers, many of whom will be key workers such as NHS staff and teachers, to get onto the property ladder for the first time.
The scheme is there to support local people who may be struggling to meet the market value of houses in their area.
It’s a way of making homeownership more affordable, as well as keeping those all-important key workers in their respective communities.
How Does the First Homes Scheme Work?
Homes will be offered to key workers looking to buy property at a discount of at least 30%. That same percentage will continue on with the sale of the property to future first-time buyers, ensuring the homes are always sold below market value.
Councils will be allowed to give first dibs to key workers living in the area looking to get on the property ladder. It’s an incentive for keeping the people who have worked so hard during the pandemic, in the area so they can continue their great work.
This will be done by each local authority setting a local connection test to determine which key workers should get priority based on the needs of the community they operate within.
Where Are the First Homes Scheme Properties Situated?
The scheme launched early last month, with the first phase of homes based in the Bolsover district of the East Midlands. Following on from the launch, a further 1,500 homes will enter the market from autumn.
Once the project is fully up and running, the government projects at least 10,000 homes a year entering the scheme across England and Wales.
Many banks and building societies have announced their partnership with the scheme, committing to provide 95% LTV (Loan to Value) mortgages for first homes. These include:
- Chorley Building Society
- Darlington Building Society
- Leeds Building Society
- Mansfield Building Society
- Nationwide Building Society
- Newcastle Building Society
How Can Pure Property Finance Help with the First Homes Scheme?
If you’re lucky enough to be in a position to secure a first-time buyer mortgage, then Pure Property Finance are here to help find you a deal. Our dedicated team of specialists can help pave the way to homeownership for you.
Want to learn more about our services? Contact us today.
Article By Jamie Williams
July 25th, 2021
Jamie Williams is an integral part of our specialist finance team. He is an expert in bridging and development finance, as well as commercial and second charge mortgages.
With over 17 years experience in the mortgage and specialist finance world, Jamie uses his unrivalled knowledge to provide the ultimate client experience.See more articles by Jamie