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| Version 0 | Version 1 |
|---|---|
| Housing boost for 'key workers' | Housing boost for 'key workers' |
| (about 2 hours later) | |
| Extra help for up to 20,000 key workers looking to get on the property ladder is on offer from Monday. | Extra help for up to 20,000 key workers looking to get on the property ladder is on offer from Monday. |
| The Open Market HomeBuy Scheme will see the government and selected lenders funding up to 25% of a property cost. | The Open Market HomeBuy Scheme will see the government and selected lenders funding up to 25% of a property cost. |
| Interest payment start after five years but it should help borrowers afford more expensive property. | |
| Borrowers will still have to fund the remaining 75% of the property cost through a standard mortgage or their own savings. | Borrowers will still have to fund the remaining 75% of the property cost through a standard mortgage or their own savings. |
| Scheme acceptance | Scheme acceptance |
| We want to help more families get a first step on to the housing ladder Yvette Cooper, housing minister | We want to help more families get a first step on to the housing ladder Yvette Cooper, housing minister |
| The scheme will be open to public sector workers and those on council housing waiting lists. | The scheme will be open to public sector workers and those on council housing waiting lists. |
| Applicants will be assessed by HomeBuy agents, employed by local housing associations. | Applicants will be assessed by HomeBuy agents, employed by local housing associations. |
| Once the applicant has been accepted onto the scheme they will have 12.5% of the property value loaned to them by the government and 12.5% by a lender, drawn from selected banks and building societies. | Once the applicant has been accepted onto the scheme they will have 12.5% of the property value loaned to them by the government and 12.5% by a lender, drawn from selected banks and building societies. |
| This 25% loan will be interest free for the first five years but if the property is sold the government and lender will be entitled to a share in any increase in its value. | This 25% loan will be interest free for the first five years but if the property is sold the government and lender will be entitled to a share in any increase in its value. |
| The government said that its portion of the loan will be interest free indefinately. | The government said that its portion of the loan will be interest free indefinately. |
| The 25% loan will help the borrower afford a more expensive home than would have been the case if they had had to rely on just a mortgage and their own savings as a deposit. | The 25% loan will help the borrower afford a more expensive home than would have been the case if they had had to rely on just a mortgage and their own savings as a deposit. |
| The concept is excellent but the scale and eligibility (of the scheme) falls short of widespread expectations and hopes Helen Adams, FirstRungNow.com | The concept is excellent but the scale and eligibility (of the scheme) falls short of widespread expectations and hopes Helen Adams, FirstRungNow.com |
| The government cited the example of a public sector worker earning £35,000 a year. | The government cited the example of a public sector worker earning £35,000 a year. |
| The worker would be typically entitled to a mortgage of £122,500, with the 25% HomeBuy scheme loan on top they could afford a property worth £160,000. | The worker would be typically entitled to a mortgage of £122,500, with the 25% HomeBuy scheme loan on top they could afford a property worth £160,000. |
| "We want to help more families get a first step on to the housing ladder," Yvette Cooper, housing minister said. | "We want to help more families get a first step on to the housing ladder," Yvette Cooper, housing minister said. |
| "In the long run we need to build more homes to ease the pressure on house prices. | "In the long run we need to build more homes to ease the pressure on house prices. |
| "But in the meantime this new mortgage deal will help thousands of families into a home of their own," Ms Cooper added. | "But in the meantime this new mortgage deal will help thousands of families into a home of their own," Ms Cooper added. |
| Surface scratched | Surface scratched |
| To date four lenders have signed up for the scheme - Nationwide, Bank of Scotland, Morgan Stanley Advantage, and the Yorkshire Building Society. | To date four lenders have signed up for the scheme - Nationwide, Bank of Scotland, Morgan Stanley Advantage, and the Yorkshire Building Society. |
| The scheme, though, has been criticised as only scratching the surface of the problem of property affordability. | The scheme, though, has been criticised as only scratching the surface of the problem of property affordability. |
| "The concept is excellent but the scale and eligibility (of the scheme) falls short of widespread expectations and hopes," Helen Adams, managing director of property website FirstRungNow.com, told BBC News. | "The concept is excellent but the scale and eligibility (of the scheme) falls short of widespread expectations and hopes," Helen Adams, managing director of property website FirstRungNow.com, told BBC News. |
| "Today's first time buyers, unless they can be described as a key worker will still need to look for a solution amongst the array of new property and mortgage 'deals' being offered or go cap in hand to their parents," she added. | "Today's first time buyers, unless they can be described as a key worker will still need to look for a solution amongst the array of new property and mortgage 'deals' being offered or go cap in hand to their parents," she added. |
| Housing target | Housing target |
| The Open Market HomeBuy scheme will run alongside the already existing HomeBuy scheme. | The Open Market HomeBuy scheme will run alongside the already existing HomeBuy scheme. |
| Broadly, the existing HomeBuy scheme helps key workers buy up to 75% of the value of a property, with a registered social landlord or property developer owning the remaining stake to whom they pay rent. | Broadly, the existing HomeBuy scheme helps key workers buy up to 75% of the value of a property, with a registered social landlord or property developer owning the remaining stake to whom they pay rent. |
| Since HomeBuy started in 1999, 40,000 people have been helped to buy part of their own property with the government targeting another 100,000 for help by 2010. | Since HomeBuy started in 1999, 40,000 people have been helped to buy part of their own property with the government targeting another 100,000 for help by 2010. |
| But in July a report from the National Audit Office (NAO) said the government needs to improve the efficiency of its shared ownership home buying schemes. | But in July a report from the National Audit Office (NAO) said the government needs to improve the efficiency of its shared ownership home buying schemes. |
| Only 11,000 households were helped by the HomeBuy schemes in 2004-05 even though 60,000 applied. | Only 11,000 households were helped by the HomeBuy schemes in 2004-05 even though 60,000 applied. |