Purchasers use new scheme to get on the ladder

A new Government scheme called MyChoiceHomeBuy which is being offered by Barratt West Midlands, has proven to be a hit with homebuyers at the housebuilder's Saddler's Reach development on Hospital Street in Walsall.

The scheme which has been offered at Saddler's Reach since July, allows first-time buyers and key workers who could not otherwise afford to buy a suitable home for their needs, to purchase a brand new Barratt home for up to 50 per cent less than the market value. It means that eligible purchasers, who are earning between £15,000 and £60,000, could receive an equity loan of up to £65,000 towards purchasing a home of their choice on the open market, making the dream of home ownership a reality.

Graydon Worthing, Sales Director for Barratt explained, "Since its launch just a few months ago, we have already taken reservations for several homes using MyChoiceHomeBuy, with many purchasers saying that it has meant the difference of being able to buy a home, or not.

"This initiative has been specifically designed for those who would otherwise find it a struggle to take the step towards home ownership and with an equity loan of up to £65,000 it is no surprise that eligible purchasers have been keen to take advantage of the scheme."

Not only will the equity loan help to reduce the size of the monthly mortgage repayments, but there is no need for a deposit, making it ideal for those buyers who haven't much in the way of savings.

This equity loan for MyChoiceHomeBuy is provided by the government and the amount homebuyers receive will depend on the mortgage they can afford, but it could be up to as much as £65,000. Homebuyers pay a small monthly fee on the MyChoiceHomeBuy equity which is capped at 1.75 per cent for the first year and is then index linked so the repayments are manageable and predictable.

After homebuyers have lived in the property for one year they can continue to pay the equity off in steps, or in total, depending on what they can afford.

The price of repaying the equity percentage bought with MyChoiceHomeBuy will be based on the value of the home at the time they want to repay the equity loan, whether that is more or less than when they originally bought the property.

Saddler's Reach currently has a selection of one-bedroom apartments available. Prices start from £93,600. For further information log on to Barratthomes.co.uk/saddlersreach.