14 March 2008
Two new equity loans that are being offered to help people get on the property ladder will provide a much-needed boost to first-time buyers, the Department for Communities and Local Government (CLG) has said.
Caroline Flint, housing and planning minister, said that the two new equity loans will benefit "both families and first-time buyers".
One scheme, known as MyChoiceHomeBuy, offers an equity loan of between 15% and 50% of the purchase price and can be used with a conventional mortgage.
The other, Ownhome, can be used in conjunction with a mortgage from the Co-operative Bank and offers an equity loan of between 20% and 40%.
"Since 1997, 95,000 households have benefited from shared equity schemes," Ms Flint commented, adding that the new plans will help "even more first-time buyers" to get on the housing ladder.
The Budget also stated that more would be done to promote long-term fixed rate home loans for buyers.