New measures to encourage 2,000 onto property ladder

Permalink: New measures to encourage 2,000 onto property ladder
by Kay Murchie

A new scheme is to be announced by the Government which will help first-time buyers and key workers to get onto the property ladder.

There will be £1,500 grants to help qualifying buyers with costs such as legal fees and furniture. Over £3 million has been allocated for the grants enough to help 2,000 people.

The grants will be offered to buyers who participate in the Government’s Open Market Homebuy scheme (OMHB) and those who qualify include social tenants, key workers and some first-time buyers.

Currently, there are two OMHB shared equity loan products offered by the Government, providing loans of between 15% and 50% of the total cost of the property.

Under the scheme, qualifying buyers take out a mortgage for a percentage of their home and then another loan, known as a shared equity loan, from the Government and lenders to pay for the balance.

Prime Minister Gordon Brown will say by offering new grants and sharing a stake in their home, we are making the dream of a new home more affordable for thousands of low-income first-time buyers and key workers such as nurses and teachers.

The Government is to confirm locations of surplus public sector land to be used to build 30,000 new homes. Housing Minister Caroline Flint said there is an urgent need to build more homes.

Ms Flint is also expected to confirm that she will meet with Council of Mortgage Lenders and Treasury ministers to discuss how to help borrowers struggling with mortgage payments.