First Homes Scheme: Have You Heard About It?

More than ever, buying a home has become easier, with a host of schemes available that help first-time buyers get onto the property ladder. One such scheme is the “First Home Scheme,” this initiative was set by the Government to help key workers (this is location-specific, however, means an essential worker for a local area), buy a discounted market tenure, this must be by at least 30% of the value of the property to be eligible under the scheme.

The scheme is part of the government’s response to making available affordable housing, planning obligations are in place for some property developers to offer a percentage of new builds at a discounted rate.

The good thing about this scheme, is that if a key worker decided to sell the property later down the line, the discounted market tenure is logged, with the land registry, and eligible future buyers will also be able to receive the discount.

There are of course, other criteria that need to be met to be eligible for the Frist Homes Scheme, such as being a first-time buyer. If you wanted to buy the property with your partner, they would also need to be a first-time buyer to be eligible. There are also restrictions to buying, limited to a maximum combined income up to £80,000, more if in London.

A maximum property value is also in place, and the initial sale cannot exceed £250,000 (£450,000 in London). The scheme is designed to attract key workers to buy in the area they service, and applications can be processed faster for those that decide to apply for the scheme in an area they work in.

It would be a good idea to research the First Home Scheme, if you are considered a key worker, and are thinking about buying your first home. If you are also thinking about taking out a mortgage, speaking to an experienced mortgage broker could also be beneficial. 

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Attention: Late repayments can cause you serious money problems. For help go to moneyhelper.org.uk

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