With its aim to give more people the chance to own their own homes, the First-Time Buyer Initiative was conceived under the leadership of the Office of the Deputy Prime Minister. As part of the Department of Local Communities and Government Home-Buy low-cost home ownership initiative, it works for key workers and eligible groups who could own home but are nevertheless, prevented from venturing into the real estate market because of strict terms and conditions. A survey indicates that even as 90 percent wants to own their own homes, 70 percent are capable of sustaining one for them. Thus, the Initiative was established to meet this current prevailing on able first-time buyers who can afford but feel constrained by mortgage processes and the like.
It usually works under certain conditions. For instance, raising a mortgage for a minimum 50% in the property’s cost, with the government to hold the remaining share of the property. The first three years of homeownership will have no other payments and when that expires, the homeowner only pays a charge of 1% per year on the equity you don’t own. Usually, it increases 1% a year and 3% maximum in five years. Selling the property also allows the government to repay the share they own. Another thing you must know about the FTBI is that an option to buy additional shares in your home at any time is also available for the homeowner.
How will you know, then, if you are eligible for the Initiative? About 50 percent of available homes are available for key workers such as nurses, teachers, and police officers across England. The remaining homes are made available for groups identified in the regulations or as prioritized by local Regional Housing Boards. A maximum household income of 60,000 pounds is usually the measure on one’s eligibility. Usually, Home-Buy agents are appointed by the Housing Corporation to be the first point of contact to first-time buyers. They are actually the ones responsible for regulating the government’s range of low-cost home ownerships schemes and evaluating your eligibility for the program. Also, what about access to savings so you could pay your dues? This is also one qualification.
Another feature of the Initiative is the cutting of English Partnerships, making homes more affordable to buyers, as these guarantee a share of proceeds after providing the buyer assistance to purchase the property. It is to the partnerships that buyers pay a monthly fee based on the agency’s entitlement. Moreover, English Partnerships made Housing Options Plus a National Home-Buy Agent, through which more service could be provided and expanded. With this new role, one-stop-shop for all FTBI homeowners is provided until full ownership.
Sounds like a good deal? The fastest way you can take advantage of this is to contact your local Home Buy Agent who can see if you qualify for the program.
Tags: home buy
