An alternative to Bank of Mum and Dad for first time buyers

01/07/2011

Eight out of ten people rely on help from their parents when buying their first home.

Now the Government has launched a scheme designed to provide an alternative to the Bank of Mum and Dad.

The Housing Minister Grant Shapps is calling on young people to make use of the newly launched FirstBuy scheme, which is being run by the Government in conjunction with major house builders.

Under the scheme, the Government and the house builders will provide a loan equal to 20% of the purchase price of a newly built property. The buyer therefore only has to find 5% to provide a total deposit of 25%. He can then take out a 75% mortgage on the rest of the property. 

Grant Shapps said: "With 80% of young first-time buyers depending on parental help, I am determined that we pull out all the stops to help those who want to take their first steps on to the property ladder.

"FirstBuy will do just that - a Government-backed scheme making £500 million available to offer a valuable alternative to the Bank of Mum and Dad. Over the next two years, this will help as many as 10,000 people in England to get that much-needed deposit together and realise their dreams of owning their own home.”

The loans are free of charge for the first five years and are repayable once the property is resold.

Please contact a member of our conveyancing team on 01782 846 441 or email info@grindeys.com if you would like more information about buying and selling a home.