Taylor Wimpey raises the roof for first time buyers

Taylor Wimpey West Midlands is raising the roof (as well as its game) when it comes to getting first time buyers on the property ladder!

In just a few months, the leading housebuilder has notched up 30 sales on four developments (in West Bromwich, Cannock and Telford) to those most affected by today’s home ownership issues – via a special government shared equity scheme.

The ‘HomeBuy Direct’ scheme is aimed at helping purchasers with a household income of less than £60,000 afford the home they want. A timely equity loan is available for up to 30 percent of the value of the property, co-funded by the Homes and Communities Agency and Taylor Wimpey. For example, this means that if you qualify for a mortgage of £140,000, you could buy a property worth up to £200,000.

No interest is charged on the equity loan for the first five years and the purchaser has to contribute the remaining equity through an agreed mortgage. Buyers are also able to pay off the equity loan in instalments at any stage after the first 12 months or sell their ‘HomeBuy Direct’ property on the open market if they wish – with the equity loan being repaid by way of a share of the sales proceeds.

Carol Edwards, sales & marketing director for Taylor Wimpey West Midlands, comments: “The ‘HomeBuy Direct’ scheme is a great way for purchasers to afford their first home because it’s designed to overcome the hurdles of high mortgage costs and larger deposits, which we know are preventing many people from buying.

"Purchasers own the property outright, but rather than having rent of interest to pay, the equity is shared with the loan provider. And lenders seem to prefer shared equity (as opposed to shared ownership) schemes because this type of loan helps protect both borrower and lender from any negative equity.

"We’ve enjoyed six ‘HomeBuy Direct sales at our Central Square site in West Bromwich, six at Fallowfields in Huntington village, near Cannock, and 18 at our two Telford sites (nine at Castle Meadows in Hadley and nine at The Village Millennium Community in Ketley) plus we have another half dozen or so in the pipeline.

“It’s been very popular to say the least and as we were allocated 84 properties in this scheme, across our four sites, there’s still time and opportunity to take advantage. It really is a joy to be able to help onto the property ladder those people who, in the current climate, would not be able to raise a suitable deposit or secure a mortgage.

"Another recent (and advantageous) development in ‘HomeBuy Direct’ is that couples due to start a family can get more than the original one extra bedroom needed. Originally couples with no children could only be earmarked for our two bedroom properties, but now if they’re planning to start a family they just have to state this on the application form to be considered. It’s great news and opens up a new style of spacious property potentially available to them.”

For more information, visit taylorwimpey.co.uk/westmidlands.