First Time Buyers' Initiative
What is First Time Buyers' Initiative?
First Time Buyers' Initiative is a shared equity scheme which offers help towards the purchase of a new build apartment on the Riverside One development at Middlehaven, Middlesbrough.
How does it work?
If you are eligible, you will be offered an equity loan of up to a maximum of 50% of the purchase price based on the full market valuation of the property but will still own 100% of the property.
You must fund at least 50% of the purchase price via a conventional mortgage and a deposit where required. You must get your conventional mortgage from a qualified lending institution.
There are no charges on the loan for the first three years but at the start of year four, you must start to pay interest on the loan amount, at an annual rate of 1% after three years, 2% after four years and 3% every year afterwards.
What are my options after buying through the scheme?
If you want to sell your property, you can sell your home on the open market but you must repay the government contribution at that time. If the government contribution was 25% of the full purchase price, you must repay 25% of the total value at the time of sale.
You can make part repayments, known as staircasing, at any time.
For full details of the First Time Buyers' Initiative, please download the following buyers guide:
