George Osborne has today announced in the Budget that he is to fund a £250m package to get first time buyers on the property ladder. The 'First Buy scheme' is aimed at getting 10,000 first time buyers to be able to purchase a newly built flat or house.
The buyer must still provide a small 5% deposit, however a further 20% will be provided by the home builder and government by way of a low cost loan. The loan will be interest free for the first 3 years. This means that the buyer can seek a mortgage with a 25% deposit and obtain significantly lower rates.
The government funding for this scheme is expected to come from the new bank levy introduced by the Chancellor in the last budget.
If you are a first time buyer and would like more information on this then bookmark our site for regular updates on this First buy scheme
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