First-time homebuyers have received a major boost with news that Bovis Homes have successfully applied for the Government's new FirstBuy scheme which is to be used at a number of its developments.
That means there are now new homes across the country that could soon be bought with just a 5% deposit and a 75% mortgage - with the Government's Homes and Communities Agency (HCA) and Bovis Homes jointly providing the other 20% as an equity loan. Find out where these new homes are by clicking here.
First-time buyers can qualify if their household earnings are less than £60,000.
Commenting on the new scheme, Group Marketing Director Kevin Wilkins, said: "We're delighted to team up with the Government in backing this scheme which should represent a major boost for first-time buyers. High deposits have been identified as a major factor in preventing people getting on the property ladder, pushing up the average age of the first-time buyer to 37 according to recent Government reports, but this new package bucks that trend.
"We've got a wide range of properties that are ideal for the first-time buyer market and the new scheme offers a superb opportunity to snap them up with a lower deposit and an attractive mortgage proposition."
As an example, it means that a first-time buyer could buy a typical Bovis Home priced at £150,000 with a deposit of £7,500 and a mortgage of £120,000.
Applicants will need to obtain an approved mortgage from one of the scheme lenders and for the first five years there is no fee charged on the equity loan component. It is intended that the equity loan is repaid within 25 years.