Tuesday 15th April 2008
Buying a house could become a little easier for some people following the introduction of a "major package" of initiatives by the Department of Communities and Local Government (DCLG).
The government body has announced the introduction of a number of cash grants for different homebuyers who might otherwise face financial difficulty when making their purchase.
Such assistance is available to individuals who buy their new home using one of the governments shared equity mortgages, as announced in the Budget.
Prime minister Gordon Brown comments: "We want to do more for people who may need an extra hand to buy their first home.
"By offering new grants and sharing a stake in their home, we are making the dream of a new home more affordable."
He adds that thousands of first-time buyers and key workers - such as teachers and nurses - are likely to benefit from the scheme.
The initiative promises to pay a grant of £1,500 to help participants to cover the cost of setting up a new mortgage.
As the DCLG points out, these can range from paying solicitors for their services to buying new furniture to fill the home.
Some £3 million has already been set aside by the government to provide funding for the grants.
Through the scheme, it is estimated that a household with a combined income of £32,000 should be able to purchase a property with a value of up to £200,000.
Monthly mortgage payments would be approximately £760, compared to about £1,350 without government assistance.
Overall, the government body claims that consumers purchasing power is boosted by 50 per cent through the shared equity and grants.
Meanwhile, the DCLG has also announced the launch of a review process which aims to provide assistance to individuals living in houses in multiple occupancy, such as students.
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