HomeBuy direct helps couple onto the property ladder

Andrew and Lizzie McMillan, both 26, are looking forward to moving into their brand new apartment at Barratt North London’s popular Riverside Quarter development in Bishop’s Stortford, thanks to the Government’s new HomeBuy Direct scheme.

Homebuyers taking advantage of this new scheme can receive an equity loan of up to 30 per cent, funded jointly by Barratt and the Government. The buyer finances the remaining 70 per cent of the purchase price, either through a mortgage, a deposit or a combination of the two.

The McMillans accepted a 22.6 per cent equity loan under the scheme, which equated to £44,000; this allowed them to buy a two-bedroom apartment priced £195,000 for just £151,000.

The couple originally filled out an application form with their local housing association to find out what schemes were available and then visited Riverside Quarter to find out more.

Andrew says: “Barratt’s sales advisors discussed the various ways we could buy at the development. The HomeBuy Direct scheme worked out to be the best option for us; it met all our requirements, allowing us to make that all-important first step onto the property ladder.”

Under HomeBuy Direct, buyers are protected against possible falls in property values by up to 30 per cent as the Barratt/Government equity share will absorb price risk. In addition, there is no interest to pay on the equity stake for the first five years. Buyers can redeem the loan in instalments, purchasing up to 100 per cent of the equity after their initial purchase by buying additional equity at the market rate. Alternatively, if they sell their home, the equity loan is repaid by way of share of the sale price.

The scheme is open to first time buyers, key workers and others who are currently renting. People who have previously owned properties but are now unable to do so – perhaps because they have been in relationships which came to an end – can also apply. Households eligible to take up this opportunity will be earning less than £60,000 a year.

Andrew adds: “There would have been absolutely no way we could have afforded to buy our own home without this scheme. We are still surprised at how easy it is. Of course, there is quite a bit of paperwork but it’s all relatively simple and there’s plenty of help at hand. Being first time buyers we had lots of questions, however Barratt’s sales negotiators were really friendly, helping us at every stage.”

Andrew and Lizzie were married in July 2007 and shortly after this they moved into a rented two-bedroom terraced house in Bishop’s Stortford. Lizzie says: “We decided that we wanted to invest in our own property rather than paying rent on a house that didn’t belong to us. We can’t wait to move into our apartment in June when we will be able to put our own stamp on it, really making it our home.”

Lizzie works in London as a personal assistant to directors of a charity. She says: “I get a train into London every day; it will be much more convenient when we move into our new apartment as Riverside Quarter is less than five minutes walk from the station.”

Andrew is a teacher in Bishop’s Stortford and has already told his colleagues about HomeBuy Direct and recommended they sign up.

Glyn Hopping, managing director at Barratt North London, says: “Riverside Quarter is proving extremely popular with buyers; we’re selling around three homes a week. The recently launched HomeBuy Direct scheme is a great opportunity for buyers but it won’t always be available; we can only offer it on a select number of homes. I would encourage anyone interested to seize the day.”

Situated on the banks of the River Stort, in a new public square with retail and restaurant units, Riverside Quarter could not be better placed. When complete, there will be 104, one and two bedroom apartments; many with river views. The homes are opposite the stylish new Jackson Square shopping mall, adjacent to a large Sainsbury’s and Marks & Spencer and a short walk away from the shops, cafés, bars and restaurants in the town centre.

Transport links are excellent. Bishop’s Stortford’s station provides fast services to London Liverpool Street in around 40 minutes. Alternatively, Stansted Airport, less than five miles away, runs train services to London every 15 minutes.

Prices start from £140,000 for a one-bedroom apartment and from £182,500 for a two-bedroom apartment. For more information on Riverside Quarter, the HomeBuy Direct scheme and other excellent offers currently available, see Barratthomes.co.uk.