Posted: 20 February 2013 by Higgins Homes
With house prices at eye wateringly high levels and mortgages hard to come by, it's not the best time to be a first-time buyer. Getting a foot on a rung of the property ladder is tough for those without the spare income to save for a deposit, or the family help that many have in funding the first property purchase. However, all is not lost as the Government has made a commitment to helping first-time buyers get started in the form of the NewBuy scheme.
According to Government figures some 1.6 million people in their 20s and 30s are living with their parents, whilst many others are struggling with the balancing act of meeting high private sector rents and trying to put money aside for a deposit. In response to this situation, the NewBuy scheme is designed to give potential homeowners who already have a small deposit but not an amount that would usually be enough to obtain a mortgage from a bank the opportunity to get finance for a property purchase.
The scheme applies to new properties that are being built by those developers that have signed up to the scheme and the finance is offered by institutions that are also part of NewBuy, with an indemnity provided by the Government. There are a number of advantages to the NewBuy scheme for a first-time buyer in Essex, as well as all over the country.
Firstly, the scheme offers the opportunity to obtain a 95% mortgage on properties up to £500,000, which is currently almost impossible in the private sector. Because the homes in the scheme are new there is no chain to consider and you are purchasing a property that is far greener than those built in decades gone by. The scheme also allows first-time buyers to make an investment in property at a time when house prices look set to continue to rise. NewBuy will provide considerable relief and motivation for those looking to get onto the property ladder in these troubled economic times.