FirstBuy scheme makes owning a property in the South West possible
The governments and Redrow’s FirstBuy scheme provides light at the end of the tunnel for potential first time buyers in the South West.
With house prices in the South West nearly 12 times average incomes¹, rents across England up 4.6% in 12 months, and spiralling household costs potential first time buyers in the South West may feel that they will never be able to get onto the property ladder.
However, with house prices coming down in the South West, over 40% of postcodes saw a fall in prices according to Hometrack’s Monthly National Housing Survey report for October and interest rates still at a record low it is a good time to buy.
The governments and Redrow South West’s First Buy scheme provides the opportunity for people earning less than £60,000 to get onto the property ladder throughout the South West. Redrow and the government provide a 20% equity loan (interest free for 5 years), with the buyer needing to raise a 4% deposit and arrange a 76% mortgage.
For example, to buy a new £200,000 Redrow home, you may only need a deposit of £8,000 (subject to lender conditions) and secure a mortgage of £152,000. The remainder of the purchase price is covered by the shared equity loan from Redrow and the Government. The interest free loan is risk free, if you sell after five years, you only pay back 20% of the sale price.
Kathryn, 28, sales co-ordinator from Bristol, and her partner Ian took advantage of the FirstBuy scheme to buy their first Redrow home, a 3 bedroom semi detached at Aurora Springs, Kathryn said: “We are currently paying over £700 a month (on rent) and have found it very difficult to save up money for a deposit. At our current rate it would have taken us at least 10 years to save up for a 25% deposit. It also makes sense for us to buy a new home that is energy efficient so we don’t have to worry about the cost of gas and electric as much as we do now.”
Mr. Jordan, from Somerset, who recently bought a Redrow home at Bagley Green in Wellington using the FirstBuy scheme, added: “I am local to the Wellington area and we have been renting for a number of years. Without the first buy scheme we would never have been able to afford a brand new two bedroom house.”
Hannah Pollard, Sales Manager from Redrow commented: “With rents rising and interest rates at a record low buying a home is an attractive alternative. The main barrier to getting onto the property ladder is the substantial deposit required to secure a mortgage. The FirstBuy scheme can help first time buyers overcome this barrier.
“Redrow has funding for 84 FirstBuy homes in the South West and they are proving very popular as first time buyers take advantage of this great offer.”
FirstBuy is available at the following Redrow developments in the South West: Steeple Chase (Calne, Wilts), Willowbrook (Devizes, Wilts), The Bowery (Bristol), Aurora Springs (Bristol), Clifton Heights (Holsworthy, Devon), Bagley Green (Wellington, Somerset) and The Fairway (Newton Abbot, Devon)
To find out more about Redrow homes and to apply for the FirstBuy, visit redrow.co.uk.
