Cash-strapped first-time buyers, or house hunters looking to re-enter the housing market, are now able to get some help to make their homeowning dreams come true at Heritage Gardens, the Redrow development of new homes in Tipton, West Midlands. Funds from the Government's FirstBuy purchase assistance scheme are now available on selected plots at the development to eligible buyers who are otherwise struggling to find a property at an affordable price.
“Many people still aspire to owning their own home, but think they can't afford to without a large cash deposit. Now, however, their buying power is boosted by the Government-developed FirstBuy,” says Pauline Turnbull, sales director for Redrow Homes (Midlands). “It reduces the overall size of the mortgage required and, more importantly, the improved loan-to-value ratio (LTV) means lenders generally ask for a much smaller deposit. It means that buyers with savings of around 6,000 could find they have enough to make that crucial first step on the property ladder.”
Under the scheme, prospective buyers of affordable new homes at Heritage Gardens need a deposit of as little as 5,840 to secure a three-bedroom 'Broadway' home. On the market for 145,995, with FirstBuy the up-front price is reduced to 116,796. FirstBuy provides up to 20% of the price in the form of an equity loan from Redrow and the Government's Homes and Communities agency. This reduces the need for a large deposit and means that the buyer only needs a mortgage (currently provided by Halifax) of 76% of the market value of the home.
The loan is interest-free for five years and only needs to be paid back when the property is sold, or when the homeowner has saved up enough. It's a scheme that is limited to those with an annual household income of less than 60,000 who are buying their first home or getting back into homeownership, for example after a marriage break-up.
“FirstBuy is perfect for those on lower incomes now who expect their salaries to rise over time,” continues Pauline. “It could be the difference between wasting your hard-earned cash on rent or settling for an older home that's in need of lots of work, when what you really long for is a home of your own that's fresh, modern and easy to maintain.”
There's an impressive range of three- and four-bedroom homes available at Heritage Gardens, and three show homes to view, which are open daily from 10.00am to 5.30pm. These West Midlands new homes are ideally situated for all the major towns and cities of the region and have excellent motorway connections within a few miles, in the shape of the M5, M6 and M54.
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