BM Solutions to allow Houses of Multiple Occupation (HMO’s)18 Mar 2013
New Mortgage Guarantee Scheme announced20 Mar 2013
Chancellor George Osborne has today announced new plans to help people to buy their own homes.
The Help to Buy scheme improves on a previous scheme known as FirstBuy.
The main points of the new scheme are:
- It enables buyers to put down a 5% deposit on a newly built home.
- Up to 20% of the cost of the home is funded by a “shared equity” loan, which will be repayable when the home is sold. That loan will be interest-free for the first five years.
- Thereafter borrowers will have to pay a 1.75% annual fee on the “shared equity” loan, which will then rise by 1% above the Retail Prices Index (RPI).
- The remainder is paid for with a standard mortgage.
- Whereas the previous scheme was only open to first-time buyers, this one will be available to all buyers of newly built homes. The income limit of the previous scheme @ £60,000 a year will not apply to the new scheme.
- It will cover newly built homes up to the value of £600,000.
- Borrowers will be able to apply from April 1st 2013.