Barratt backs Government's ‘HomeBuy Direct' scheme

Barratt North Midlands is to offer 41 new homes to Derbyshire customers under a new Government scheme ‘HomeBuy Direct' that gives homebuyers the chance to move in for only 70 per cent of the purchase price.

Barratt North Midlands will match the Government's funding pound for pound in the new venture to provide the 30 per cent equity loan to the homebuyer. 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 a total of 3,000 homes nationwide. Under the scheme, buyers will be protected against possible falls in property values 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 joint Barratt/Government equity stake for the first five years, although a fee will be charged from year six onwards.

James Poynor, Sales Director at Barratt North Midlands, said: "We are delighted the Government recognises our outstanding track record in delivering affordable homes in Derbyshire through initiatives like this. And we are very pleased that it has chosen to work with us to help 3,000 households nationwide who have wanted to buy a home but until now have been unable to afford one.

"Customers will be buying into the market at today's prices, not the high 2007 prices. And the loan for 30 per cent of the property's value makes it even easier for them finally to own the roof over their heads."

Rt Hon Margaret Beckett MP, Housing Minister, said: "It is great news that major developers like Barratt are backing the Government's HomeBuy Direct scheme and working with us to help first-time buyers on to the housing ladder."

The 41 homes being allocated to the scheme in Derbyshire include plots at The Spires in Chesterfield and Hallam Fields in Ilkeston.

Offering a selection of one and two bedroom apartments and three and four bedroom family homes, The Spires is a modern development situated in the bustling market town of Chesterfield, where plenty of schools, restaurants, cafes and bars are all within comfortable walking distance. Close transport links with the M1 make travelling to the nearby cities of Sheffield and Nottingham easy.

Hallam Fields is similarly convenient in location with easy access to all local amenities and with fast routes to both Derby and Nottingham it is ideal for busy families and commuters alike. With a wide portfolio of one bedroom apartments and two, three and four bedroom homes, Hallam Fields has something to offer everyone in Derbyshire.

Barratt is launching a pre-registration scheme at barratthomes.co.uk/homebuydirect to cater for the expected strong level of interest. The website contains the full list of sites. Customers who have pre-registered will be immediately contacted as soon as a property in the Derbyshire area becomes available. Households eligible to take advantage of the offer will be earning less than £60,000 and would not normally be able to afford to buy a suitable property on the open market.

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 a share of the sale proceeds.

It's not only First Time Buyers and Key Workers who stand a chance of benefiting. People who have previously owned properties but are now unable to do so - for example, in cases where relationships have broken down- can also apply.