HomeBuy Direct gets first time buyers moving

Date: Wednesday 25 February 2009

A special Government scheme called HomeBuy Direct has been launched at Bryant Homes and George Wimpey developments across England. The new initiative, which has recently been launched nationally, will help first time buyers get on the property ladder with an interest free equity loan.

The HomeBuy Direct scheme is aimed at helping purchasers with a household income of less than £60,000 afford the home they want*. An interest free equity loan is available for up to 30 percent of the value of the property, co-funded by the Homes and Communities Agency and Taylor Wimpey.
For example, the initiative means that if you qualify for a mortgage of £140,000, you could buy a property worth up to £200,000.

Kevin Belsham, Taylor Wimpey UK Sales and Marketing Director, comments: "The new HomeBuy Direct scheme is a great way for purchasers to afford their first home. It’s designed to overcome the hurdles of high mortgage costs and larger deposits, which we know are preventing many people from buying. We have over 700 new homes across England which are available through the scheme and we anticipate that interest for them will be high. It’s definitely worth visiting the marketing suite at a Bryant Homes or George Wimpey development participating in HomeBuy Direct to see what it has to offer."

A spokesperson at the Homes and Communities Agency (HCA) said: "Through HomeBuy Direct the HCA is offering a golden opportunity for local people who have been priced out of the property market. Our £400 million investment nationally will also act as an important stimulus to help restore confidence in the housing market."

No interest is charged on the equity loan for the first five years** and the purchaser has to contribute the remaining equity, through an agreed mortgage***. Buyers are also able to pay off the equity loan in instalments at any stage after the first 12 months or sell their HomeBuy property**** if they wish.

Eligibility and affordability checks will be carried out by the relevant HomeBuy Agent. To start that process, you should contact a participating Bryant Homes or George Wimpey development for further information.


**No fee charge for the equity loan for the first five years but a fee will be charged from year six onwards.

***Agreed mortgage could be agreed with any lender regulated by the Financial Services Authority

****Buyers can sell their HomeBuy property on the open market. The equity loan needs to be repaid by way of the share of the sale proceeds.