The scheme, named Open Market HomeBuy, is available to first time buyers who are key public sector workers, social tenants or those on a council waiting list and other priority first time buyers.
The plan allows for prospective homeowners to arrange a mortgage through one of the participating lenders for 75% of the value of the house they wish to buy. They will then be eligible for an interest free loan, provided by a combination of the lender and the government, to cover the remaining 25% of the value of the house.
Currently, a family on a combined income of GBP35,000 could typically obtain a mortgage of GBP122,500. But, if eligible for Open Market HomeBuy, they could potentially buy a home worth over GBP160,000.
We want to help more families get a first step on to the housing ladder. If you haven’t got family or friends who can help it can be hard to get started. In the long run we need to build more homes to ease the pressure on house prices. But in the meantime this new mortgage deal will help thousands of families into a home of their own, said UK housing minister Yvette Cooper.
