Starter Homes Initiative Mortgages

Kim91

I'm new to all of this and looking for some advice!
I've just found a great home for me and it's on the new starter homes initiative so is 20% discounted against market value. I've spoken to the broker that the housing developer use and he has said that there are very few lenders that provide mortgages for this at the moment, especially as the house is off plan. They have gone through some details with me and got a mortgage in principle approved with Halifax which was based on a minimum 5% deposit. I can now put my reservation fee down (£500) and then have 6 weeks to get the mortgage and hand over my deposit.
Has anyone had any experience with the new starter homes initiative and getting a mortgage for these? If so, who did you go to, did you use a broker or go direct and what was your experience?

Many thanks in advance!

Dolly123

Hi Kim, yes basically they are discounted 20% of full market value so that local people and key workers can get on the housing ladder, when you come to sell you have to sell the house to a similar buyer like yourself, unless you buy the extra 20% then you can sell them to anyone. I wasn't aware only some lenders will lend against these though?