MyChoiceHomeBuy scheme will pay for half your home
It seems like every day the papers, TV and web has doom and gloom about the property market and the UK economy and this week is no different: the average price of a home is down by 2% in June 2008 alone
The UK Government has a new scheme to lure more people into stepping on the property ladder called the MyChoiceHomeBuy Scheme. The first area to test this scheme is Lincoln, it means a property buyer can get an equity loan of between 15% and 50% which can be paid back monthly or all in one go if they choose to sell up. This will be available through selected agents in England intially. This scheme also means you can get £1,500 towards your moving costs and it also means you get 100% mortgages through selected lenders such as the Halifax.
The MyChoiceHomeBuy Scheme will be open to first time buyers AND other buyers, there are 1,000 properties up for grabs in the UK however priority will be given to keyworkers and members of the armed forces.
This will obviously have a knock on effect on the building trade, but how much impact will 1,000 home make when over 100,000 are required to reverse the trend of first time buyers being priced out of buying property?
If these schemes will be a success or just be a drop in the ocean will remain to be seen, some properties in the Uk have fallen by £20,000 already so will this mean that first time buyers can afford them? Probably not. First time buyers are not keen to be tied down to a long term mortgage, as they are ususally young and will have to move for work etc so they will still lose out.