First Time Buyer’s initiative (FTBi) is part of the government’s ‘HomeBuy’ initiative aimed at helping first time buyers who cannot afford to get that all-important first step onto the property ladder. It is shared equity scheme on designated FTBi development.

Applicants purchase a minimum 50% share of a property, (minimum £25,001) with the government owning the un-sold share. If the applicant’s affordable income multiple indicates they can afford more than a 50% share, they will be required to purchase the higher share - this way the government can assist more people into home ownership.

For the first three years, there is nothing to pay on the share that the government owns. At the start of year four, there is a 1% payment due to the government on the unsold equity, at the start of year five; 2%, and at the start of year six; 3%, where the payment is capped. These payments will be made to the government through the National HomeBuy Agent via a monthly direct debit.

Approximately half of the available properties under the First Time Buyer’s initiative will be available to key workers, and the remainder will be offered to first time buyers who are either current social housing tenants, Regional Housing Board priorities (i.e. in the Eastern Region: NHS medical receptionists and secretaries, and LA employed Teacher and Learning Support Assistants and Support Workers) and other genuine first-time buyers who cannot afford low cost home ownership without assistance.

You will also need to have access to funds to cover, typically a minimum 5% deposit and the other costs incurred in property purchase, e.g. legal fees, mortgage arrangement fees etc and be able to sustain a minimum 50% mortgage.

You should be in permanent paid employment, with a good credit history and not be in breach of a current tenancy or have had rent arrears in the previous 12 months.

Purchasers may purchase additional shares at a minimum of 10% of the prevailing market value at any time.

When the owner sells their share in their FTBi home they will repay the government the share the government still owns. For example, if an applicants purchases an initial 50% of the property in year 1, and then purchases an additional 10% of the property in year 3 at the prevailing market value, and finally decides to sell the property in year 5 – the applicant will keep 60% of the property selling price (less any outstanding mortgage) and will re-pay the government, through the National HomeBuy Agent, 40% of the selling price.

The government provides the funding and establishes agreements with housing developers to provide FTBi properties through its agency; Home and Communities Agency.