Whatever your view of the outcome, the 2015 General Election result may hold positive news for struggling first-time buyers. Under a Conservative Government, aspiring homeowners will have access to a variety of schemes to help them set out on the property ladder. Originally due to finish next year, the ‘Help to Buy’ scheme will now extend until 2020 continue to bolster demand, boosting the construction industry and enabling the purchase of new builds. First-time buyers will be empowered under the ‘Help to Buy’ ISA, for which the government will endow £50 for every £200 saved towards a deposit, up to a maximum contribution of £3,000.
Additionally, buyers able to raise a five percent deposit will be eligible to apply for a five-year, interest-free government loan equal to 20% of a new build property’s value. In the sixth year, interest will remain at 1.75%, climbing at a rate of just 1% of that figure each year thereafter, plus any increase in inflation (as measured by the Retail Prices Index [RPI]). Borrowers are able to repay the equity loan at any time, and without penalty.
With just a 5% deposit to raise and the government protecting the lender should they default on payments, first-time buyers have a better chance than ever of securing a mortgage to buy their home. With plans for 1,500 homes to be built in Market Harborough approved in March, the dream of homeownership is set to become a reality for many first-time buyers.
Buying your first home
If you dream of owning your first home, we’d love to help kick-start your journey, visit Naylors Estate Agents on The Square, Market Harborough or speak to us now on 01858 450020