Key role for advisers in explaining options for first-time buyers ahead of new scheme
Experts have welcomed the government’s Your First Home scheme and said that advisers should stand ready to help first-time buyers. However, its limitation to new-builds could prove unfair.
The new scheme will allow eligible first-time buyers purchasing a new-build home in England to put down a deposit of 2.5%, supported by a government-backed equity loan of 20%. Further details will be announced in the autumn budget on 28 October.
Stephanie Charman, chief executive of the Association of Mortgage Intermediaries, said: “We welcome the government’s focus on helping more first-time buyers into homeownership. The deposit remains a significant barrier for many aspiring homeowners, particularly those without access to family support, and it is positive to see that the scheme will include income and property price caps to target help where it is most needed.
“Mortgage advisers will have an important role in helping consumers understand whether the scheme is right for them and, crucially, whether the borrowing remains affordable over the longer term.”
The crucial role of advisers
John Phillips, CEO of Just Mortgages and Spicerhaart, said the market was showing an element of wait-and-see ahead of the Budget and that advisers would play a crucial role in helping buyers navigate the uncertainty. “The hope is that this gives way to some pent-up demand – particularly as we find out more about the new Your First Home scheme.
“As we’ve seen with other headline products that have come to the market recently, it is likely to generate interest and enquiries, creating fresh opportunities for advisers to discuss the full range of options available to first-time buyers. As we head into the final quarter of the year, advisers need to be proactive and share the opportunities that still exist in the current market.”
However, Timothy Douglas, head of policy and campaigns at Propertymark, said all first-time buyers need support, not just those buying new-builds. “We are pleased to see measures to support first-time buyers. Looking ahead, the UK Government must not lose sight of the fact that not all first-time buyers purchase new-build properties.”
