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The New First Homes Scheme For Key Workers
What is the First Home Scheme?
It’s a new scheme where specific homes will qualify to be sold at a discount. The discount is at least 30%, but depending on the council area you live in, that could be increased up to 50%
Is this just for Key Workers, such as NHS staff?
How does it differ from other Home Ownership Schemes and can it be used in conjunction with them?
The scheme has just been brought out, but it’s unlikely that it could be used in conjunction with the other schemes.
Like other Home Ownership schemes, the First Home Scheme is intended to incentivise people onto the property ladder. One of the benefits for future generations is that the discount will always remain on the property. The home will always be sold at a discount, which hopefully means that the scheme will continue into the future.
How much will these homes cost?
Similarly to the Help to Buy scheme, the cost is capped differently in London because obviously the prices there are higher. In London the maximum price will be £420,000 and for the rest of the UK, £250,000.
This price cap is for the price after discount, so it’s possible to buy much more expensive properties, particularly with a 50% discount.
How much deposit will I need?
You will need a 5% deposit as a minimum, but if you wanted to put more deposit down, you would be likely to benefit from doing so.
Do you think the First Home Scheme will be a valuable option for key workers?
It certainly sounds like it, getting your home below market value can only be beneficial. The other home ownership schemes, such as Help to Buy, are available and seem to be getting better. Also, thousands of new affordable homes are being built that will qualify for this scheme, so it’s going to be easier to get on the property ladder, now, than it has been in the past, with another route for First Time Buyers available.
In time, it will become more apparent how easy the First Home Scheme is to use and whether or not it’s likely to be here to stay.
When will the First Home Scheme be available?
It’s expected to be available towards the end of June 2021. Hopefully, more information will be available soon.
How do you go about applying for the scheme?
The homes need to be available first, as you can’t just go and pick any home for this scheme. So a lot of this will be down to the type of property building companies are involved with. Once you qualify from that perspective, you will likely need to file a specific application first and then go through the mortgage process.
How can First Thought Financial help?
We will be able to provide further details on the scheme once they are completely finalised, but from our point of view, the scheme doesn’t really affect the advice, as the mortgage side of things is separate to the scheme itself. They intertwine, like with the Help to Buy scheme, but require separate application forms.
The mortgage process is very simple and we can certainly assist with that regardless of the scheme.
Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.