Homestake is aimed at first-time-buyers, people who cannot afford to pay the full price, and also those whose life circumstances have changed – such as those suffering from marital breakdown.
Under the scheme, a Homestake owner would pay between 60 and 80 per cent of the price of a property, with the rest held by a registered social landlord who had been granted Homestake funding.
First Mortgage has urged clients in Scotland to consider using the Homestake scheme when assessing their suitability for a mortgage.Ross Leckridge, a branch manager for First Mortgage, commented: “We have assisted over 100 clients with their Homestake grant applications, and then provided them with the practical assistance needed to use this grant to purchase property in the Edinburgh area.”
He explained the scheme had worked well for first-time buyers, and especially single applicants unable to club together to increase borrowing capacity. Leckridge added: “Before, a salary of £15,000 and a £5,000 deposit could maybe allow a client to buy property at around £60,000, but now, with Homestake, the same client could buy at around £100,000 and still have the same level of monthly outgoing as before.”
Stuart Wilson, managing director of Equity Release Advisory Service, commented: “Under Financial Services Authority rules, to give clients the best advice, it is important to make them aware of any government initiatives that will make their accessibility onto the property ladder easier. These schemes offer a bridge between social housing and private housing and are important in allowing people a sense of identity and independence.”
