Government FirstBuy Scheme - what where and how!

markalanious

So the budget has been announced and it looks like the tories are copying labour with this new/old FirstBuy scheme.

However, now it's of some interest for me as i'm saving for a deposit but only have a few percent so far.

So, does anyone know anymore than the announcement about this? I.E. where can I get on this bandwagon and what are the implications.

Any further advice welcome!

Ta

Mark

steveM1978

A new £250 million equity scheme designed to help struggling first time buyers get on the housing ladder has been announced by George Osborne in the Budget.
As predicted earlier today, the chancellor confirmed that the scheme, which is called Firstbuy Direct, will use profits from the bank levy to help 10,000 first time buyers to purchase a newly built flat or house. It will replace Labour’s Homebuy Direct scheme which was withdrawn last autumn.
Buyers will have to put up a 5% deposit, the government and home builder will cover 10% each and then the remainder of the amount will be covered by a loan.
It is hoped the scheme will help protect up to 50,000 jobs in the construction industry.
The news comes less than a week after Lloyds TSB announced it had teamed up with local councils to help first time buyers raise a deposit for a house. Lloyds’ new scheme, ‘Local Lend a Hand’, will allow borrowers to put down a deposit of just 5% when they buy their first home, compared to the 10% deposit required by the majority of lenders.

leveller2911

I'm looking to buy within the next 18 months and have saved for years for a decent deposit.The latest wheeze is just another go at propping up house prices.

Councils should not get into bed with the banks and the Government should allow Councils to start building Social Housing on a large scale.

People should save for deposits and not take these so called easy options like shared ownership.......

It doesn't matter how they tinker with these schemes at the end of the day House prices are way too high for young people to afford and until they have the balls to stop propping up the system and let it find its true level then things won't improve for FTB and also those on the rungs wishing to move up......

Stu_Dent

markalanious wrote: »

So the budget has been announced and it looks like the tories are copying labour with this new/old FirstBuy scheme.

However, now it's of some interest for me as i'm saving for a deposit but only have a few percent so far.

So, does anyone know anymore than the announcement about this? I.E. where can I get on this bandwagon and what are the implications.

Any further advice welcome!

Ta

Mark

I'd also be really interested in how to take advantage of this scheme..

any help would be much appreciated!

expatreturning

hi everyone, long time lurker, first time caller.

this looks rather like the old Homebuy Direct scheme to me...

I have a question about eligibility. If it is the same criteria as the old HBD, then I am eligible (key worker, < £60k household income, FTB). One thing I am not clear on: it's for people who cannot afford a property without assistance. Thing is, over the last few years I have managed to save well over the 5% required; probably 10-15% deposit (depending on house value obviously). Would this penalise or disqualify me, because I have too much saved up?

Because if eligible, my plan would be to use the FBD scheme and put down 5% deposit as required. The rest of my savings can sit in my ISA until I'm allowed to start repaying, the aspiration being to have it cleared (or reduced as much as possible) before the 5 year point repayment & interest kick in.

(With this scheme, does the loan value increase with the value of the house? Or is it a fixed amount? Can't find whether this new FBD scheme is equity-linked or not).

Thoughts? I'm especially interested in the eligibility / amount saved aspect of it. Would hate to be disqualified for having been a good boy and saved up assiduously for a house deposit. Yes, we could just about afford a house without this scheme - but would have to upgrade when the kids get a bit older. With FBD, we might be able to get a property we can actually settle down in for the long term...

macadamia_2

Why would any first time buyer even think about buying an over-priced, poorly built, shoebox sized new build? All that's going to happen is that builders will raise the prices of these (same happened in Australia). What this is going to do is give more competition to the already suffering house-market out there so if you really want to buy now (??) then you do have this to negotiate with.

Anyone foolish enough to fall for this scheme is going to be saddled with their shoebox for a long long time as it'll never re-sell at the price you are going to pay for it. Then whatever it sells for you'll need to pay back 20%. OUCH.

expatreturning

so you wouldn't recommend it then? lol

RedTulip

macadamia wrote: »

Why would any first time buyer even think about buying an over-priced, poorly built, shoebox sized new build?

I agree macadamia. My partner and I will be buying our first house soon but it will be my grandparents old house (bit complicated, but that's another story)

I don't want a shoebox, I want the lovely 1930's semi of which I have fond memories groing up. We won't get any benefit from this new scheme, why don't they just try and help all first time buyers... or none at all?

markalanious

You will have to forgive me, but several of us have posted on this thread now asking for more information, yet the only comments offered have been moans about the scheme, the government and the general cost of buying for first timers.

You are all entitled to your opinions, however I suggest you voice them in your own thread, please leave this thread alone for those that have useful information on the FirstBuy scheme.

Thanks

Mark

macadamia_2

RedTulip wrote: »

I agree macadamia.

won't get any benefit from this new scheme, why don't they just try and help all first time buyers... or none at all?

Agreed and the only way the government could help all FTBs is by letting property fall to it's correct value (20-30% less). This propping up of the market is insane.

macadamia_2

Markalanious - THIS IS useful information on the scheme. Of course there will always be some people that won't listen.