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First Home Scheme

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First Home Scheme – Discounts for First Time Buyers and Key Workers

A new government scheme called the First Homes Scheme launched in June giving First-time buyers and Key workers a 30% – 50% discount on the purchase of their first home.

The First Homes Scheme is part of the government’s wider pledge to deliver one million new affordable homes by 2024 to help more people get on to the property ladder.

It follows the launch in March of the 95% mortgage guarantee scheme which aims to increase the availability of mortgages for people with just a 5% deposit.

Who is the scheme designed for?

The First Homes Scheme is designed to help those struggling to afford their first home, the initiative kicked off in the Bolsover district of Derbyshire with further sites set to follow over the next few months, and an additional 1,500 homes joining the scheme this autumn.

The government has pledged a further 10,000 properties will be added to the scheme every year.

The discounted houses will be available to first-time buyers and key workers looking to get on the property ladder at almost a third off compared with the market price.

That same 30% will then be passed on with the sale of the property to future first-time buyers, meaning homes will always be sold below market value to later generations.

Some major high-street lenders Halifax and Nationwide Building Society, along with local building societies and community lenders, have announced that they will be offering high loan-to-value against the First Homes Scheme to support the rollout.

Speak with one of our experts about First Home Schemes

Speak to our expert brokers on all types of mortgages, remortgages, even if you have bad credit. One of our expert brokers will be able to review your current situation and advise on the best way of moving forward with our knowledge and access to over 100 lenders. The initial advice is free, there is only a cost if you proceed with a mortgage.

How does the Scheme work?

Under the First Homes scheme, a percentage of new build homes will be sold to first-time buyers and key workers who meet the eligibility criteria.

They will be sold at a minimum discount of 30% of the open market price, although in some cases that discount could rise to 40% or even 50%.

When the property is sold again, the same discount will be passed on to the next first-time buyer, to ensure the homes will always be available to the local community at below market value.

Sale prices are capped at £250,000, rising to £420,000 in Greater London, after the discount has been applied.

First Home Scheme

Am I eligible?

The scheme is available to first-time buyers who are either local or key workers, or in the Armed Forces including current members of the Armed Forces, as well as divorced, separated or widowed spouses, and veterans who apply within five years of leaving the forces.

The definition of key workers includes doctors, nurses and teachers, as well as delivery drivers and supermarket staff.

If a property is being purchased by a couple, both individuals must be first-time buyers with a combined annual household income of less than £80,000, rising to £90,000 in Greater London.

At least 50% of the purchase must be funded through a mortgage.   You will require a minimum deposit of 5% although this will be down to the lenders individual criteria and additional deposit may be required depending on your credit profile.

The First Home Scheme isn’t the only government incentive to help First Time Buyers on the ladder, to read more visit our Help to Buy, Shared Ownership and Right to Buy pages.

However, If you’re a first-time homebuyer, all these details and technicalities could be overwhelming. Clever Mortgages are a team of experts that help first-time homebuyers go through the entire financing and home buying process. We have helped lots of clients through their first home buying process with step-by-step assistance.

Remember, even if you currently have or have had previous credit issues or a low credit score the team are able to help.

If you’re ready to become a homeowner, give us a call today!

Speak with one of our experts about First Home Schemes

Speak to our expert brokers on all types of mortgages, remortgages, even if you have bad credit. One of our expert brokers will be able to review your current situation and advise on the best way of moving forward with our knowledge and access to over 100 lenders. The initial advice is free, there is only a cost if you proceed with a mortgage.