You are here: Home - Specialist Mortgages - Guides -

Guide to FirstBuy Direct

Written by:
In June 2011, the Government launched FirstBuy Direct, a shared equity loan scheme designed to assist first-time buyers and boost the construction industry.
Guide to FirstBuy Direct



It is expected to help up to 10,000 buyers get onto the property ladder. Under FirstBuy, which succeeds the previous Labour government’s HomeBuy Direct Scheme, the Government and selected house builders jointly provide borrowers with equity loans of up to 20 per cent of the price of a new-build home, so that eligible purchasers only need to find a five per cent deposit to qualify for a 75 per cent loan-to-value (LTV) mortgage.


FirstBuy is only available in England and lenders including Halifax, Barclays, NatWest and Nationwide are among those offering FirstBuy products on the market.

One of the concerns surrounding FirstBuy is that if property prices fall, buyers paying a five per cent deposit could suddenly find themselves in negative equity – where their property is worth less than they paid for.

This problem is compounded because the scheme only applies to new-build properties, which many believe are more susceptible to price fluctuations than more established housing stock.

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Save money now!

See how much you could potentially save by remortgaging to a different product

Your Mortgage Guides

Guide to Offset Mortgages

Download our handy guide to offset mortgages, brought to you in partnership with Scottish Widows Bank

Read More >

How much can you borrow?

A calculator designed to help you understand how much you can borrow towards your property
Read previous post:
Remortgaging top reason for mortgage applications via brokers

Remortgages accounted for 37% of all mortgage cases handled by intermediaries in the third quarter of the year, data from...