First Time Buyers Initiative
About the First Time Buyers' Initiative
Please ensure you read the full Buyers' Guide on FTBI. Click here for quick link to the Guide.
Getting on the housing ladder is a real problem for thousands of people up and down the country - and it is especially difficult here in the South East.
The First Time Buyers Initiative (FTBI) is part of the government's new 'HomeBuy' low cost home ownership initiative and Moat will be offering FTBI homes in the South East. The scheme applies to new build homes and aims to make owning your own home more affordable. The way the FTBI works is simple. You buy your brand new home with an affordable mortgage and with government assistance. You have 100% ownership of your home and take out an affordable mortgage for a minimum of 50% of the full purchase price through a normal lender. The government then provides additional assistance to buy up to the full purchase price. Your mortgage repayments will be your only outlay for the first three years of ownership. After this time, the government (via a HomeBuy Agent) will charge a fee of 1% of the government's contribution. This fee will rise to a maximum of 3% after five years in the property.
When owners sell their FTBI home, they will repay the government's contribution by way of a share of the sale proceeds. So, if the government initially assisted the purchase with 25% contribution, the repayment will be 25% of the total value when it is sold.
Staircase to full ownership
The FTBI is not only an affordable way of moving towards owning your own home; it is also flexible enough to change with your personal circumstances. You can choose to repay the government and increase your share of future sale proceeds, at any time. The repayments are calculated at the current market value: this is called 'staircasing'. For example, you may want to increase your future share of sale proceeds from 50% to 60% of the value of your home. The minimum additional purchase is 10% of the market value. By taking advantage of this opportunity, you'll be taking real steps towards the benefits of full home ownership.
What if I want to move?
FTBI homes are also flexible enough to allow you to move home with the minimum of fuss. after the sale of your home, you'll simply repay the government their % of the equity, based on the final sale valuation.
What do I do now?
If you're finding it difficult to realise your dream of owning your own home, then an FTBI home through Moat could be for you. The FTBI scheme is underway now, and hopes to make new homes available nationally over the next four years. Closer to home, Moat are currently marketing new FTBI homes in Kent and Essex (see links to property information on the left). Just pick up the 'phone and call 0845 359 6161 or email us at marketing@moat.co.uk to register your interest and find out more.
Applicants are welcome from prospective first time buyers who cannot afford to buy a suitable home on the open market. Certain other conditions will also apply, such as limits on household income. Please contact us for further details.
Applicants for FTBI homes must be able to demonstrate access to savings or sufficient funds to cover the costs of buying, which will include solicitor's fees, stamp duty and, in some cases, a reservation fee or deposit.
Click here to apply online!
Your home is at risk if you do not keep up rent and mortgage repayments or payments on other loans secured on it.
Please note that the value of properties can go down as well as up.