First time buyer takes first step on the ladder

Olimpia Modorcea moved from Hungary to England three years ago and currently works in Watford. Olimpia has been renting an apartment, thinking she couldn't afford to buy her own home. However, at the end of May she will move into a brand new apartment in Barratt's Queensgate development located in the heart of the town; an apartment she purchased for just 50 per cent of the price.

Olimpia says: "I first saw Queensgate last June while out shopping. I went to have a look and thought the design was very good. I did some research, and finding Barratt to be a reputable housebuilder, decided to see if there was any way I could afford to buy there. I was told about the Government's special funding for first time buyers and was fortunate enough to qualify. I could not have managed to buy a two bedroom apartment on my own, but, thanks to the Government's First Time Buyer Initiative (FTBI), I will soon be living in my own home."

Queensgate is a development of 94 contemporary one and two-bedroom apartments and duplex penthouses located just yards from the Harlequin Centre. Just six, two-bedroom apartments remain for sale, all of which can be purchased under the First Time Buyer Initiative.

The special funding Olimpia benefited from is part of the Government's ‘HomeBuy' low cost ownership initiative. The FTBI helps aspiring first-time buyers, who cannot otherwise afford to buy a home outright, to purchase a minimum of 50 per cent of a new home with Government agency English Partnerships providing the remainder of the funding.

Under the scheme, which is a form of equity mortgage rather than shared ownership, people are able to purchase a home for the first time without requiring large amounts of capital and with mortgage repayments they can afford. Applicants need to have £1,000 to cover the reservation fee, as well as savings of £4,000; although this sum can be gifted by relatives.

Applicants who meet the criteria will be able to select their new home, pay a deposit and arrange the ‘maximum affordable' mortgage for at least 50 per cent of the property's cost through a participating bank or building society. English Partnerships will then contribute the remainder of the funds.

For the first three years, buyers will be responsible for their mortgage repayments but will have nothing to pay to English Partnerships. At the end of the fourth year, the buyers will pay an annual charge of one per cent of the funds provided by English Partnerships, two per cent becomes payable at the end of the fifth year and a maximum of three per cent is payable at the end of the sixth, and each subsequent year.

At intervals, buyers will be able to purchase an additional share of the equity in their new homes from English Partnerships at the prevailing market value; a minimum 10 per cent share can be purchased at any one time. Apartments bought under this scheme can be sold on the open market and the proceeds of the sale will be split with English Partnerships pro rata to their share.

Olimpia adds: "I found the whole buying process straightforward and the Barratt sales staff exceeded their roles by providing a really excellent service. I am looking forward to moving into my apartment and have a friend who is so impressed he is also considering buying at Queensgate."

Glyn Hopping, managing director of Barratt North London, says: "It is estimated that more than a quarter of a million people are prevented from owning their own homes because of the widening gap between earnings and house prices. We are delighted to be offering the FTBI at Queensgate and helping people like Olimpia take their first steps towards full home ownership."

For further information on Queensgate, where two bedroom apartments are priced from £280,000, visit Barratthomes.co.uk.