| Porlock Road, Southampton, Hants

For Sale 3 bedroom house
Property value £150,000
Share percent 50%
Share percent price £75,000

What is First Time Buyers Initiative (FTBI)?

FTBI makes more affordable homes available to first time buyers priced out of the housing market. It is part of the Government's new "HomeBuy" low cost home ownership initiative and is available through HomeBuy Agents across England.

It enables aspiring first time buyers, who cannot otherwise afford to buy a home outright, to buy a minimum of fifty per cent of a new home on a designated FTBI development. Government will hold the remaining equity, with buyers raising a loan and making mortgage payments on their portion of the home.

For the first three years of FTBI home ownership there are no other payments to make on the part of the home's equity a buyer does not own. After three years buyers will pay a charge to Government (through a HomeBuy Agent) of one per cent per annum on the equity they don't own. This charge rises by one per cent annually reaching a maximum of three per cent after five years in the property.

Because it is made affordable, FTBI is a "stepping-stone" to assist buyers into full home ownership.

When owners sell their FTBI home, they will repay Government its equity. So if a buyer initially purchased seventy-five per cent it will repay the Government twenty-five per cent of the value at the time they sell. A HomeBuy Agent will recover the Government's repayment.

FTBI homeowners can also choose to increase their equity share at any time by purchasing more equity from the Government at the current market value. The minimum additional purchase is ten per cent of the market value.

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Who can buy?

Anyone who cannot afford to buy a suitable home on the open market and is a first time buyer can apply.

First time buyers working in their local area and contributing to the economy are eligible as are those in need of help due to a relationship breakdown.

For certain groups, a maximum household income of approx £40,000 will apply. Lower limits may apply to other eligible groups.

As well as being in an eligible group to purchase, applicants for FTBI homes must be able to demonstrate access to savings or sufficient funds to cover the costs of buying which will include solicitor's fees, stamp duty and, in some cases, a reservation fee or deposit.