Cash scheme for first-time buyers
FIRST-TIME buyers are being given a step up onto the housing ladder by Yorkshire home improvement website Decision2day.
Called Decision2day FirstHome, the scheme uses the current downturn in the housing market to offer first-time buyers the chance to buy new homes at a discount to the normal retail price. It also includes additional support to provide a substantial deposit.
Barnsley businessman Antony Green, Managing Director of decision2day.com, explained: "We are offering new houses for sale at a big discount to the normal market price.
For example, we can sell a new three-bedroomed house for 125,000. Previously, this would have been valued at about 150,000."
The 125,000 price includes a loan from decision2day of 25% to 31,250 – to cover the deposit. So the buyer only has to raise a mortgage for 75% of the purchase price.
"Importantly, the loan from decision2day is interest-free for the first five years, during which no repayments are required," Mr Green added. "For the second five years, we will charge minimal interest of as little as 2% APR, payable monthly."
After 10 years, the house will have to be refinanced. When that happens, decision2day will receive 25% of the new value, while the owner will retain 75%.
Mr Green said. "First-time buyers with little or no savings can buy their own new house at a generous discount, developers are able to dispose of their stock of unsold houses and the housing market gets a non-inflationary boost.
"Furthermore, our scheme encourages developers to keep building houses, thereby maintaining supply and easing fears of renewed house-price inflation."
He said Decision2day FirstHome was in line with Government policy and was similar in many ways to the Government's own HomeBuy scheme. "The main difference being that our scheme is funded privately rather than by the taxpayer."
Anyone wanting to take part in the FirstHome scheme should go to www.decision2day.com to register their interest.
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Weather for Sheffield
Wednesday 08 February 2012
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