Essex-based solicitors firm Palmers has welcomed the news that measures are to be put in place by the Government which may help people get a foot on the property ladder.
The existing FirstBuy scheme, which was aimed at first-time buyers, will be extended to include anyone wishing to buy a new-build home.
The “Help to Buy” scheme, which launches on 1 April, will provide shared equity loans of 20% of the property price if purchasers put down a 5% deposit from their own savings. This is much lower than the deposits currently required by banks.
New-build homes must not exceed £600,000 in value in order to qualify for the loans, which will be interest-free for the first five years.
There will also be a new mortgage guarantee, designed to increase the availability of loans to purchasers, which extends the NewBuy Guarantee scheme to include older houses as well as new-builds. Starting in 2014, the scheme will run for three years and will support £130 billion of mortgages.
Clare Butcher, an associate solicitor at Palmers specialising in residential property, said: “On the face of it, this is excellent news for those who want to get on the property ladder but are unable to raise the high deposits often required by banks or other lenders.
“If the measures work in the way that the Government says it intends, this ought to mean that more people are now able to realise their dream of buying their own property.
“At Palmers, we have been helping clients take advantage of the FirstBuy scheme for some time, so we are ready to assist buyers through Help to Buy once the changes take effect on 1 April.”