First timer secures new home with HomeBuy Direct

A first time buyer from Brampton has become the first person to secure a new home at David Wilson South Midlands’ Cromwell Gardens development on the new Home Buy Direct shared equity scheme.

Collette Thompson, who works as a Senior Recruitment Consultant for Hays, had recently moved back to the area from Reading and was looking through the local property pages for a home to rent. The 22 year old spotted an advert for the recently launched Government scheme, which aims to help more first time buyers get a foot on the ladder, and the lure of buying a home for initially just 70 per cent of the asking price seemed too good an opportunity to miss.

Collette comments “I was planning on renting whilst I saved for a deposit but when I saw that I may be eligible for this scheme I had to ring to find out more. I called the sales negotiator who took me through the process and after that it was just a matter of filling out the paperwork to see if I could qualify.”

The Government introduced Home Buy Direct in a bid to make the buying process more affordable. On this scheme purchasers can buy a property for initially just 70 per cent of the asking price, David Wilson and the Government’s Home and Communities Agency (HCA) will fund the remaining 30 per cent through an equity loan which is interest free for the first five years and payable when the property is sold.

It aims to help more first time buyers, key workers and those living in rented accommodation, get a foot on the property ladder and expanding families with a household income of less than £60,000 may also be eligible for this scheme.

Collette sent off her application forms at the beginning of March and received her eligibility letter within four weeks. Her mortgage has now been approved so as soon as the surveys are finished and her brand new two- bedroom Pelham style house is completed she can move in.

Collette continues “The process has been quite quick really. I was thrilled when I got my eligibility letter through and now my mortgage’s been approved it’s all sinking in and I’m getting really excited about moving in.

“When I was looking for rental properties I would have had to have paid around £575 a month in rent but with this scheme my mortgage repayments are considerably less. I would never have thought buying would be cheaper than renting but with Home Buy Direct that has been the case for me.”

Jackie Day, Sales Director at David Wilson comments “Collette is the first purchaser within our division to buy a property on Home Buy Direct and I’m thrilled that we could help her make the move into home ownership with this scheme.

“Home Buy Direct is a fantastic initiative which aims to make the moving process as affordable as possible and as demonstrated by Collette buying on this scheme could prove cheaper than renting.

“We’ve allocated 24 homes to Home Buy Direct at Cromwell Gardens and I’m hoping we can help many more prospective homeowners make their dream of home ownership a reality.”

Terry Fuller, HCA regional director for the East of England, said “In the current climate it’s important that we help a range of people to find the best housing option to suit them, and simultaneously help stimulate the building of new homes. HomeBuy Direct, with our £400 million investment, is just one way in which we’re doing this and it is proving extremely popular.”

Home Buy Direct is currently available on selected plots at David Wilson’s Cromwell Gardens development in Godmanchester, The Cedars in Corby, Arena Gate in Northampton, Waters Edge in Peterborough and at The Sidings in Wolverton.

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 – perhaps where relationships have broken down – can also apply.

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

There is no interest to pay on the equity stake for the first five years, although a small 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. Alternatively, if they sell their home, the equity loan is repaid by way of a proportionate share of the sale proceeds.

To find out more about Home Buy Direct or the superb new homes available at Cromwell Gardens call into the sales office or go online at Dwh.co.uk.