Government offers more first-time buyer loans

Tuesday, 24 September 2024 at 06:45

There is another chance for prospective first-time buyers to apply for a government loan under the 'First Step' scheme.

So far, 51 people have been offered the shared-equity loan.

First Step launched in February, with a £10 million pot available to provide funding of up to 40% of the purchase price of a property to islanders needing help to get onto the property ladder.

Initially 125 applied and almost a fifth of those (24) were accepted.

A second round ran in June, and it has emerged a further 27 applicants were successful.

A third round is now open until 20 October.

Prospective buyers will need to fit the criteria of holding an entitled status, being a true first-time buyer and being able to pay a 5% deposit on an open-market house or flat.

Applicants must also be registered to the Assisted Purchase Pathway and be able to access the maximum lending available from one of the scheme’s partnering mortgage lenders.

First Step is a partnership between the government and Andium Homes. It was estimated up to 60 households would benefit from the initial £10 million investment.

An extra £2m has been put aside for the scheme in the proposed 2025 budget, which politicians will debate and vote on in November.

Housing Minister Deputy Sam Mezec said:

"This scheme has made a real difference to islanders who would have otherwise been unable to own their first home. I am hopeful that we will be able to reopen First Step in 2025 to help even more Islanders into home ownership."

Dominique Caunce, Andium Homes’ Policy & Stakeholder Engagement Lead, says people who have been unsuccessful in the first two rounds can reapply.