200 buyers register for new homes in the North East

More than 200 prospective North East homebuyers have signed up for a new scheme backed by Barratt and the Government which enables them to move into a new home for just 70 per cent of the price.

Pre-registration for the HomeBuy Direct scheme was launched just four weeks ago. Homebuyers taking advantage of it will receive a 30 per cent equity loan funded jointly by Barratt and the Government. The buyer finances the remaining 70 per cent either through a mortgage, a deposit or a combination of the two.

The company is backing the initiative with 3,000 homes nationwide and 68 in the North East.

Steve Mariner, sales manager at Barratt North East, said: “We have had a tremendous response since we launched pre-registration, which shows that there is enormous demand for new homes in this area.

“People who have been priced out of the market for years can see this is an outstanding opportunity to buy at new, lower 2009 prices – not high 2007 prices. The 30 per cent equity loan from Barratt and the Government means that in many cases they don’t even need to have a deposit.

“The scheme is open to first-time buyers, key workers and others who are currently renting. People who have previously owned a home but are now unable to do so – for example, where relationships have broken down – can also apply.”

Barratt North East has a selection of 2, 3 and 4-bedroom homes available through HomeBuy Direct at four developments:

• Fellview, Consett
• The Hawthorns, Hebburn
• Parkside Gardens, Middlesbrough
• Beechwood, Sacriston

Under HomeBuy Direct, buyers will be protected against possible falls in property values up to 30 per cent as the Barratt/Government equity loan will absorb price risk. There is no interest to pay on the loan for the first five years, although a fee will be charged from year six onwards.

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. If they sell their home, the loan is repaid by way of a share of the sale proceeds.

Households eligible for the scheme will be earning less than £60,000 and would not normally be able to afford to buy a suitable property on the open market.

To pre-register for the scheme visit Barratthomes.co.uk/homebuydirect. The website contains the full list of sites. Customers who have pre-registered will be immediately contacted as soon as a property in the area becomes available.