You are here: Home - First Time Buyers - News -

First applicants accepted for First Homes Scheme and target of 1,500 homes revealed

Written by: Anna Sagar
Under the scheme first-time buyers can get a 30% discount from a new home in their local area
First applicants accepted for First Homes Scheme and target of 1,500 homes revealed

Key workers, including a nurse and a police worker, are among the first borrowers to be accepted to the government’s First Homes Scheme as further house building targets for the scheme have been announced.

The scheme, which was launched in June this year with seven lenders signing up, awards a minimum of a 30 per cent discount on market price for first-time buyers and key workers to help them get on the property ladder.

These include Chorley Building Society, Darlington Building Society, Halifax, Leeds Building Society, Mansfield Building Society, Nationwide Building Society and Newcastle Building Society. All are offering 95 per cent loan to value mortgages for the scheme.

The key workers who have signed up to the scheme are from Bolsover in Derbyshire, First Homes is currently in its pilot phase. There are sites in Bolsover, Cannock and Newton Aycliffe are among the first to put homes on the market.

According to an update from the Department for Levelling Up, Housing and Communities, around 1,500 homes will now be built over 100 locations across England by March 2023 following successful bidding by housebuilders.

It comes after Eastleigh Borough Council confirmed plans to deliver 200 First Homes in the borough.

The government has also estimated that around 10,000 First Homes will be delivered across the country by 2027 and 2028.

The housing minister Christopher Pincher said: “This scheme is putting local people first and creating opportunities for young people and families to feel the sense of pride that comes with homeownership.

“We are determined to help more people on to the housing ladder and are providing significant funding to regenerate derelict land, deliver new homes and create prosperous local communities across the country.”

Stuart Miller, chief customer officer at Newcastle Building Society, said that it had seen “significant interest from customers and brokers” in its First Homes products due to the significant discount on the purchase prices, competitive interest rates and low deposit requirements.

He said: “We understand how big a challenge it is to get a foot on the property ladder with rising house prices and limited housing supply which is why we are such big supporters of this scheme and other innovative solutions such as Deposit Unlock where we were the first lender to offer mortgages under the scheme.

“We fully expect that demand for First Homes properties will exceed supply even as the scheme expands and would therefore encourage more innovation from lenders and further government support to help people achieve their dream of home ownership.”

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.

Revealed: The winners of the Your Mortgage Awards 2020/21

Find out which mortgage lenders offer the best products and services in a highly competiti...
Revealed: The winners of the Your Mortgage Awards 2020/21

Santander updates lending criteria for self-employed

Lenders are being more cautious about how they assess the income of self-employed borrower...
Santander updates lending criteria for self-employed

Six bank statement mistakes that can ruin a mortgage application

Being overdrawn and having a history of payday loans can be red flags to lenders when they...
Six bank statement mistakes that can ruin a mortgage application

Guide to borrowing past retirement age

As an older borrower, you may be concerned that a lender will not offer you a mortgage pas...

Mortgage market biased against homeowners

Buy-to-let property investors are unfairly favoured in the mortgage market, an independent...

Should buy-to-let investors ‘go Dutch’?

The Netherlands is revealed as Europe’s top buy-to-let property hotspot

Private sector tenants in poverty double in decade

The number of private rented sector tenants in poverty has doubled in the last decade from...

Large mortgage broker firm launches with fees of over 1%

An insurance firm has launched a mortgage advice service

Second steppers targeting detached properties

Those living in their first home are increasingly looking to reduce the steps to their lon...

Mortgage Calculators