The government is to offer first-time buyers and key workers to take advantage of a new equity loan scheme from April.
Known as Open Market HomeBuy, the scheme allows buyers to choose the most appropriate mortgage from a wide range of lenders.
Purchasing power will be boosted by up to 50 per cent under the initiative, an improvement on the 17.5 per cent currently offered by the government's shared ownership scheme.
"We have already helped more than 95,000 households onto the housing ladder since 1997 through our low-cost homeownership schemes," said housing minister Caroline Flint.
"Not only will the new loans increase affordability for key workers and first-time buyers, they are a lot more flexible, allowing buyers to shop around for the best mortgage deals."
Furthermore, no stamp duty will be payable until homebuyers have acquired 80 per cent of the equity.
But Louise Cuming, head of mortgages at price comparison site Moneysupermarket.com, said Open Market HomeBuy will only work if the scheme is embraced by the lending industry.
See Also: Property News (6705)
Date Published: 17 March 2008
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