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Broadgate Homes are delighted to announce that they have qualified for funding
for the new government backed FirstBuy scheme - this government backed scheme
is designed to help you to move into your first home sooner - with a smaller mortgage
and lower repayments.
Working with the government we will give you a 20% loan, which means a smaller
mortgage, a lower deposit and lower monthly repayments - plus you'll still own
100% of your new
home.
Properties are available now at The Triangle, Spalding Broadway, Spalding and
Lytlington Mews in Crowland. Housetypes available include the Holborn 2 bedroom
house and Linden 3 bedroom house at The Triangle, The Teasel 2 bedroom house
and the Linden 3 bedroom house and the Magdalene 2 bedroom house at Lytlington
Mews
– prices start from just £104,995 (80% mortgage and deposit only £83,996)
There will be further 2 and 3 bedroom properties available at The Limes, Old
Leake
– see this website or local advertising for further information on new releases.
FirstBuy in Brief
With the Government-led FirstBuy initiative you can buy a new Broadgate Home
with the assistance of two equity loans. One loan is from the Homes and Communities
Agency (HCA) and one is from Broadgate Homes.
You take out an affordable mortgage (minimum 80% of the purchase price) on which
you make repayments in the normal way. The rest of the purchase price will be
met by two equal equity loans from Broadgate Homes and the HCA.
For the first 5 years you pay no interest on the equity loans from Broadgate
Homes and the HCA.
After 5 years you pay interest on the two equity loans of 1.75% per annum - this
fee increases each year by RPI plus 1%.
When you sell your FirstBuy home the equity loans are repaid from a share of
the sale proceeds. So if your initial loan totalled 20% of the purchase price,
your repayment will be 20% of the total sale value achieved.
After 12 months of ownership of your new home you can choose to make part or
full repayment of the equity loans at the market value at that time. The minimum
repayment is 10% of the total market value.
If the value of the property has increased by this time the buyer, Broadgate
Homes and the HCA will all benefit from a share in this increase. If the value
of the property has gone down, Broadgate and the HCA will only share the sale
proceeds that are left over once the mortgage has been repaid.
Broadgate and the HCA’s entitlement to a share of the future sale proceeds are
secured through equal second and third charges on your home. This is done in the
same way as your mortgage lender secures its lending.
Although you may pay as little as 80% of the value of your new home you will
be the legal owner with 100% ownership.
Local HomeBuy Agents (a housing association appointed by the government) will
assess and approve your eligibility for HomeBuy Direct and you need to be confirmed
as eligible before you proceed with the buying process. This scheme is only available
to approved purchasers.
YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER
DEBT SECURED ON IT.
Register your interest in the FirstBuy scheme now by calling us on 01775 711637 option 1 or email us at info@broadgate-homes.com
Eligible applicants will be offered an equity loan of up to a maximum of 20%
of the purchase
price (based on the open market value)
Applicants are required to fund at least 80% of the purchase price by means of
a conventional mortgage, savings and any deposit where required. Applicants must
obtain their conventional mortgage from a Qualified Lending Institution. For the
first five years there is no fee charged on the equity loan component. At the
start of year six a fee is collected of 1.75% of the market value of the property
at the time the loan is entered into multiplied by the outstanding percentage
under the equity loan, the annual fee of 1.75% will be uplifted by RPI +1% p.a.
The equity loan is provided by the HCA and developer and held as a joint second
charge.
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