First-time buyers should do their homework when it comes to shared ownership

24-Sep-2009

A shared ownership scheme from the government could help first-time buyers get onto the property ladder, but they should be prepared to do some homework, it has been advised.

The programmes allow house hunters of all ages to apply, but stipulates that they must not own another property at the time of purchase.

In this way, buyers obtain between 25 and 75 per cent of a property with a mortgage. The proportion of the house that does not belong to the first-time buyer would be rented by the home owner from a housing association.

The Home and Communities Agency stated that this would represent no more than 2.5 per cent of the value of the rented portion of the property. The home owner could then progress to buy chunks of the house back from the association.

Commenting on the initatives, Jackie Lawrence, representative of Nationwide, said she expects the number of people signing up to the programme to increase.

"Buyers interested in shared ownership or shared equity schemes need to do their homework, as not all lenders support all schemes," she suggested.

People eligible for the New Build HomeBuy initiative are first-time buyers, previous home owners, key workers and housing association or council tenants.

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