What is the First Time Buyers Initiative (FTBI)? For the first three years of FTBI there are no other payments to make on the part of the home other than the mortgage. After three years buyers will pay a charge to the Government (through a HomeBuy Agent) of one per cent per annum on the equity they do not own. This charge rises by oner per cent annualy reaching a maximum of three per cent after five years in the property.
Because it is made affordable, FTBI is a 'stepping-stone' to assist buyers into full home ownership.
When owners sell their FTBI home, they will repay the Government its equity. So if a buyer initially purchased seventy-five per cent, it will repay the Government twenty-five per cent of the value at the time they sell. A HomeBuy Agent will recover the Government's repayment.
FTBI homeowners can also choose to increase thier equity share at any time by purchasing more equity from theGovernment at the current market value. The minimum additional purchase is ten per cent of the market value.
Who can buy? Anyone who cannot afford to buy a suitable home on the open market and is a first time buyer can apply.
Around fifty per cent of the homes to be made available through the initiative wii be for key workers such as nurses, teachers and police officers living across England. The remaining homes will be available to those groups identified as priorities by Regional Housing Boards.
For certain groups, a maximum household income of £60,000 will apply. Lower limits may apply to other eligible groups. Priority will be given to people currently in private-rented or temporary accomodation.
As well as being in an eligible group to purchase, applicants for FTBI homes must be able to demonstrate access to savings or sufficient funds to cover the costs of buying which include solicitor's fees, stamp duty and, in some cases, a reservation fee or deposit.
Where will FTBI homes be available? The Initiative is starting now with the aim of making FTBI homes available nationally over the next four years.
FTBI Homes are currently available in the following areas:
Stoke on Trent
- Lock 38 Cliff Vale
- Shelton New Road
- Built by Countryside Homes
- Limited number of 1 & 2-bedroom apartments still available
- Equity share prices from* £49,975 (for 1 bed), £64,975 (2 bed)
Birmingham City Centre
- Park Central, Bath Row
- Built by Crest Nicholson
- 60 x 1 & 2-bedroom appartments
- Equity share prices from* £63,500.
Solihull
- Chapel Walk, off Bosworth Drive
- Chelmsley Wood
- Built by Bellway Homes
- Last remaining 3 bedroom house
- Equity share from* £88,500
Wolverhampton
- Deans Park, off Willenhall Road
- Built by Persimmon Homes
- 2 x 3 bedroom houses and 12 x 2 bedroom apartments
- To be confirmed
Shropshire
- Cleobury Medows, Cleobury Mortimer
- Built by Persimmon Homes
- 16 x 2 bedroom houses
- To be confirmed
* Equity share purchased is determined by individual affordability.
How do buyers find out more and make an application?
First time buyers should contact us to make an application and find out more about availability of FTBI homes in thier area by calling us on: 0845 607 6726 or 0121 322 7377 or email: sales@mercian.org.uk.