Homebuying help for key workers
Today the Government is launching a new initiative aimed at helping 20,000 key workers to get on the property ladder.
The Open Market HomeBuy Scheme will see selected banks and building societies providing the borrower with a 12.5% equity loan, which, when combined with an equivalent loan from the government, will make up a 25% deposit for each property. The 25% loan will be repayable after five years but it should help borrowers afford more expensive property. Borrowers will still have to fund the remaining 75% of the property cost through a standard mortgage or their own savings.
It is hoped the scheme will help key workers struggling to get onto the property ladder due to soaring property prices.
Four lenders have signed up to be involved from the outset - Nationwide, Bank of Scotland, Advantage, and the Yorkshire Building Society.
The Open Market HomeBuy Scheme will see selected banks and building societies providing the borrower with a 12.5% equity loan, which, when combined with an equivalent loan from the government, will make up a 25% deposit for each property. The 25% loan will be repayable after five years but it should help borrowers afford more expensive property. Borrowers will still have to fund the remaining 75% of the property cost through a standard mortgage or their own savings.
It is hoped the scheme will help key workers struggling to get onto the property ladder due to soaring property prices.
Four lenders have signed up to be involved from the outset - Nationwide, Bank of Scotland, Advantage, and the Yorkshire Building Society.
posted by ew at
11:07 AM
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