A helping hand for first-time buyers

First-time buyers struggling to get onto the housing ladder can now get a helping hand, thanks to a new initiative by Government agency English Partnerships and Barratt Homes. The scheme, at Barratt’s Oceana Boulevard development in Southampton, means first-time buyers can take out a mortgage for a minimum of 50% of the value of their new home, the remaining 50% being contributed by English Partnerships (EP).

During the first three years, there will be nothing to pay on the EP contribution. After that buyers will pay back 1% a year, rising to a maximum of 3% after five years.

Barratt sales director, Catherine Ferguson said: "This is a terrific initiative for first-time buyers struggling to get on the housing ladder.

“This initiative adds to the supply of affordable homes, increasing levels of home ownership and creating mixed communities. It is an excellent means of helping first-time buyers towards full home ownership and we are delighted to be able to offer it at Oceana Boulevard.”

Oceana Boulevard is one of the first developments in the country to be awarded funding under the new First-Time Buyers’ Initiative (FTBI), which is part of the Government’s new ‘HomeBuy’ low cost ownership initiative.

There is great interest in this initiative and available homes are expected to sell quickly. Oceana Boulevard is located minutes from the city‘s business quarter, shops, cinema, restaurants and nightlife. It also offers many options for tranquil waterside walks, sea air and easy access to railway and bus stations, leafy parks, the New Forest and the Isle of Wight.

Barratt is working with EP and HomeBuy agent, Swaythling Housing, who will consider each application. Those who meet the criteria will be able to select a new home at Oceana Boulevard, pay a deposit and arrange the ‘maximum affordable’ mortgage for up to 50% of the property’s cost through a participating bank or building society. English Partnerships will then contribute the remainder of the funds.

There is no time limit on when buyers must repay the EP contribution. If and when they sell their home, EP then recovers its share of the property through a proportion of the sales proceeds, which buyers can reduce by making additional payments – ‘staircasing’.

Duncan Innes, the English Partnerships Director responsible for FTBI, said: “These new affordable homes will provide a real opportunity for first-time buyers in many communities across England, where they are needed most. We want to help as many people as possible to take their first steps towards full home ownership, and we want to be able to do that quickly. The First Time Buyers’ Initiative will help us to do that.”

For further details of the initiative, or for details of other apartments and penthouses at Oceana Boulevard priced from £128,500, visit Barratthomes.co.uk.