Govt announces new FTB scheme

Posted: 21 Jun 2011 12:03:06 GMT

A new initiative to help FTBs get a foot on the property ladder has been unveiled by Grant Shapps.

The government has announced a new scheme to help first-time buyers (FTBs) get a foot on the property ladder.

Grant Shapps, the minister of state for housing and local government who is also the MP for Welwyn Hatfield, unveiled the FirstBuy initiative, confirming that 100 house builders will be involved in the project.

He explained these developers are to provide their new-build properties to FTBs, while also - in conjunction with the government - offering them a 20 per cent equity loan.

Along with a five per cent deposit from the buyer, this method will enable FTBs to obtain a 75 per cent mortgage on the remainder of the property.

Mr Shapps commented: "With 80 per cent of young FTBs depending on parental help, I am determined that we pull out all the stops to help."

He added the FirstBuy scheme will be a suitable alternative to the Bank of Mum and Dad.
 

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