| The First Time Buyer's Initiative (FTBI) aims
to make more affordable homes available to first
time buyers priced out of the housing market. It
is part of the government's new HomeBuy low cost
home ownership initiative, and is available in England
through the 23 regional HomeBuy Agents. FTBI is
delivered as part of HomeBuy by national regeneration
agency, English Partnerships. |
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| It enables aspiring first time buyers, who cannot
otherwise afford to buy a new home, to purchase
a new property with an affordable mortgage and with
government assistance on a designated FTBI development.
Assistance is paid to the participating house builder,
not the first time buyer. The government then has
an entitlement to a share of the future sale proceeds.
The first time buyer has to fund a minimum of 50%
of the property purchase price. |
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| For the first 3 years there is nothing to pay
on the amount that the government contributed. After
3 years, buyers will pay a fee to the government
of 1% per annum, this fee will increase each year
by a fixed percentage reaching a maximum of 3% after
five years in the property. |
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| FTBI is a 'stepping stone' to assist buyers into
full home ownership. |
| |
| For those purchasing with a Key Worker priority,
provided you remain as a Key Worker in London, the
South East or the Eastern regions no payments are
due on the equity loan (the exceptions to this are
Herts Constabulary and Herts Fire & Rescue Service
whose Key Workers have to remain Key Workers in
Herts to qualify). If you cease to be a qualifying
Key Worker or specified public sector worker ‘clawback’
(i.e. re-paying the equity loan) will apply except
in specific circumstances. |
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| Who can apply? |
|
| Around 50% of the new homes will be for Key Workers
such as nurses, teachers and police officers. The
other 50% of homes are available for social tenants,
those on housing waiting lists and other first time
buyer groups as determined by Regional Housing Boards. |
| |
| Key Workers can only apply if their annual household
income is less than £60,000, however different
income limits may apply to other eligible groups.
Applicants must be buyers looking to own a home
for the first time, although those applying to the
scheme after a relationship breakdown will also
be considered. |
| |
| As well as being in an eligible group to purchase,
applicants for FTBI homes must be able to demonstrate
access to savings or sufficient funds to cover the
costs of buying which will include solicitor’s
fees, stamp duty, a reservation fee and typically
a 5% deposit. |
| |
| Where will FTBI homes
be available? |
|
| The initiative has the aim of making FTBI homes
available nationally over the next few years. Homes
will only be available on designated schemes where
the house builder has agreed to provide FTBI properties.
As HomeBuy Agent for Hertfordshire, Lea Valley Homes
will be managing applications for FTBI in Herts. |
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|
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| The Government Agency providing the funding and
establishing agreements with house builders to make
FTBI homes available is English Partnerships. Its
address is: |
English Partnerships
Corporate Headquarters
110 Buckingham Palace Road
London
SW1W 9SA |
|
| |
| The HomeBuy Agent promoting FTBI and dealing with
applications as part of the Government’s HomeBuy
programme is: |
Lea Valley Homes
6 Houghton Hall Business Park
Porz Avenue
Houghton Regis
Beds
LU5 5UZ |
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