First time boost as Barclays launch FirstBuy deals
Barclays have launched two new mortgage products in line with the Government’s FirstBuy scheme; a three-year fixed rate at 4.59 per cent and a five-year fixed rate at 5.49 per cent.
Barclays are one of four lenders who are backing the scheme. Other announced lenders include Halifax, Nationwide and the Melton Mowbray Building Society.
The initiative is designed to offer much needed help for desperate first time buyers (FTBs) by providing an equity loan of up to 20 per cent of the cost of the property. The loan, which is interest-free for the first five years, would then be paid back either on resale of the property or after 25 years.
The scheme means FTBs only need a 5 per cent deposit and a 75 per cent loan-to-value (LTV) mortgage agreement, provided they have an income of less than £60k and are purchasing a newly built property.
But while £250million is being injected into the scheme, many fear it will only ‘scrape the surface’ with demand severely exceeding supply.
This is especially true in London where only enough money is being set aside to help 940 buyers. The Midlands will receive the strongest helping hand; with enough cash earmarked to help 2,400 first time buyers.
But while critics scorn at the scheme’s limitations, others are focusing on the positives and see it as a step in the right direction.
Goldsmith Williams is also committed to the first time buyer cause. GW 1st Step gives FTBs 10 per cent off our fees as well as a £50 Marks and Spencer or B&Q voucher upon completion.
Content correct at time of publication