Struggling first-time buyers have been given a boost with an extra £280 million injected into the FirstBuy scheme.
Launched in March 2011, the shared equity scheme provides a financial boost to first-time buyers with a 20% loan from the Government and house builders, alongside a 5% deposit from the borrowers themselves.
Often considered as the life-blood of the market, first-time buyers have suffered immensely as a result of the credit crisis. Lenders, still very much risk focused, are reluctant to lend to first-time buyers due to the lack of mortgage credit history, leaving many young people with little other choice but to rent property.
Available initially to a maximum of 10,000 borrowers, the extension of £280 million will help an additional 16,500 first-time buyers achieve their goal.
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