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Can anyone shed some light on this new housing scheme??

(12 Posts)
AngelCakeUmm Sat 28-May-05 16:45:52

Hi everyone,

My MIL phoned this morning and was explaining a new housing scheme that the goverment are doing.
She says they are going to build new houses for first time buyers who can not afford to get onto the property ladder. she says that they will be about 60,000 for a 2 bed house and that you have to get a morgage for half and the goverment pay the other half?? she says its not starting till april 2006?

Does anyone know anything about this, and is this right?
Also if so where do you have to go to find out about all this, maybe goverent website or something?

TIA your advice and help would be much appriciated

Janh Sat 28-May-05 16:47:38

Daily Telegraph

There is a small catch, in that you only own the share you pay for, so when you sell you only get half the profit.

Janh Sat 28-May-05 16:49:41

On another page it says:

"The Government gave details of plans, such as shared ownership schemes, to help young people on to the property ladder. By next April at the earliest, it should be possible to take a mortgage for 75 per cent of the value of a property, to receive 12.5 per cent as an equity loan from a mortgage lender and the remaining 12.5 per cent from the Government.

If the property is sold for less than the purchase price, the Government could lose its money as the buyer and the mortgage lender will have priority over the funds."

(Oh, and you have to pay some rent on the bit you don't own - not sure how much or how that works.)

AngelCakeUmm Sat 28-May-05 16:55:16

Thanks janh yeah i think it is 3% rent on the bit you don't own.
I think its a good scheme for people like my family as in the area we live in we can not afford to buy at the moment.
We were just looking at moving away so that we could afford to buy our own home, but dp really loves his job and wants to keep it,

Does anyone have any idea who you have to contact to put your name down for this or show your interested etc etc?

tammybear Sat 28-May-05 17:01:49

when i was on the waiting list for a council place, i remember they sent me information about schemes like this when they were available in the area. maybe an idea to ask your local council if you would like to know about one of these schemes in your area?

AngelCakeUmm Sat 28-May-05 17:05:14

Tammybear i will try the council but this is a new scheme they have just spoken about, the scheme through the council is part-ownership i am not sure this has anything to do with the council but i will try them as they may point me in the right direction or a may be totally wrong and they may well deal with this new scheme by the goverment too. thanks

Janh Sat 28-May-05 17:05:19

It was only announced in any detail this week, ACU, so tammybear's advice is probably the best thing - try your council first.

Janh Sat 28-May-05 17:08:52

This website looks useful - First Rung Now - for first-time buyers.

MarsLady Sat 28-May-05 17:14:11

also they said that the banks/lender would decide who would be eligible for this scheme. It will not be means tested. Eg if you want to buy your dream house (way above what you need or can afford) they will say no.

AngelCakeUmm Sat 28-May-05 17:24:41

thanks for all the helpful advice, marslady i just want to be able to buy our first home together as a family, not a drea home or anything and unfortunatly in the area we live in (surrey) and dp one wage we can not afford to do it and probably never will be able to.

MarsLady Sat 28-May-05 17:28:32

the dream house thing was what I read honey. I know the position that you are in cos DH works in the care industry and we can't afford a house half the size that we need. Wasn't a personal poke!

AngelCakeUmm Sat 28-May-05 17:31:20

Oh no mars sorry i must just be coming across being funny, but honestly i understand and know it was what you had read, sorry if i sounded funny, i was just explaining my situation.

The houses are such silly prices where we live so we were thinking of moving but may see what happens with this scheme and see if we are eligable if not looks like a move across the country for us

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