Countryside Properties has secured a government product aimed at helping first time buyers from the Homes & Communities Agency for selected developments across the North West.
The equity loan scheme FirstBuy will now be available at Countryside Properties' Norris Green Village, a collection of two, three and four bedroom homes in Liverpool; Copper Wells, a range of two, three and four bedroom homes in Heywood; and New Broughton Village, a range of one bedroom apartments, three bedroom duplex apartments and three and four bedroom homes in Salford.
Through FirstBuy, eligible first time buyers can purchase 100% of their new property with the assistance of an equity loan of up to 20% of the full purchase price. The loan will be jointly funded by the HCA and Countryside Properties.
For example, for a three bedroom house at Norris Green Village, priced at full market value of £125,000, buyers who take advantage of FirstBuy can receive an equity loan of up to 20%, equating to £25,000. Through the scheme, buyers would contribute a further 5% towards the home's deposit, equating to £6,250; and raise a mortgage for the remaining 75%, equating to £93,750. Countryside Properties said the percentage of equity loan may vary, but not exceed 20%.
The FirstBuy equity loan remains interest free for five years and is repayable within 25 years of property purchase or upon the sale of your home.
Peter Vella, regional sales and marketing director for Countryside Properties, said: "This scheme now forms part of our ongoing commitment to making home buying more affordable for those looking to enter the property market. Recent figures [from Nationwide] have shown that the average deposit for a house is 21%, for which it would take first time buyers an expected eight years to save."
The scheme was announced in the Government's Budget in March and forms part of the Government's wider proposals to help people access home ownership. The announcement follows the HCA's recent pledge of £180m funding to assist approximately 10,500 first time buyers in England.
FirstBuy is now being offered on a selected range of new build developments across the country, with approximately £24m assisting buyers across the North West of England.