Your First Home: the full picture behind the new deposit scheme
A deposit of two and a half per cent. That is the headline from Andy Burnham's announcement this week of the Your First Home scheme, confirmed as he arrived in Liverpool for his first Labour Party conference since taking office. First time buyers without support from family will be able to buy a new build home backed by a government loan worth twenty per cent of the property value. The Prime Minister set out the plan in a message posted directly online, and in an interview given to the press on the eve of conference. How the scheme works The mechanics are simple. Take a new build home priced at the current national average for first time buyers, around £230K according to Rightmove. Under the scheme, a buyer would need: A deposit of two and a half per cent, around five thousand seven hundred and fifty pounds A government equity loan of up to twenty per cent, around forty six thousand pounds, interest free at the outset A mortgage covering the remaining seventy seven and a h...
