New home buyers get a helping hand

Leading North West property developer, McDermott Homes, is reminding homebuyers about a recent government-led initiative that could help them up the property ladder.

MyChoiceHomeBuy is designed to help first-time buyers, people looking to get back into the property market and those requiring a larger property normally out of their price range. The scheme allows eligible buyers to borrow between 15% and 50% as an equity share towards purchasing a home of their choice on the open market.

The initiative is a welcome relief for many would-be buyers, as it moves away from the restrictive shared-ownership model, where buyers purchase a percentage share in a property owned by a housing association and pay rent on the remainder. Buyers in this type of scheme have a limited choice of properties and face tough restrictions on resale.

Under MyChoiceHomeBuy, buyers supplement their mortgage with the equity share, which is paid back when they come to sell their property. Not only does this allow them to choose a property from the open market, they are also free to choose a lender via one of the appointed financial advisers. Furthermore, there is no deposit required.

In addition to the mortgage repayments, a monthly fee is payable on the equity share.

Kevin Murthwaite, Sales and Marketing Director at McDermott Homes, has welcomed the initiative and the much needed boost it will give to the new homes market.

“First-time buyers and those who normally couldn’t afford a larger property now have a fantastic opportunity to get on, or move up, the property ladder at an affordable level. With no deposit required and the chance to own your own home instead of renting, potential buyers will need to act quickly before funding runs out.”

MyChoiceHomeBuy is available to buyers with a household income of less than £60,000. Buyers pay a monthly fee on the equity share and repay the share in full when they sell their home.

The total amount repayable is linked to the value of the property, therefore if MyChoiceHomeBuy contributed 15% towards the purchase, then the buyer must repay 15% of the value when they come to sell, even if this is less than when they bought it. Buyers can also purchase a larger share of the property when they are financially able to do so.

A select number of properties across McDermott Homes’ six developments are available to purchase under the MyChoiceHomeBuy scheme. McDermott Homes currently has developments in Bacup, Keighley, Earby, Bolton, Blackburn and Rossendale.

More information is available on Mcdermotthomes.co.uk.