Keepmoat’s development in the East Midlands is the pilot housing site for the sale of new-build homes under the First Homes banner. The homes must be sold at a guaranteed discount of 30 per cent off the local market value.
The site is located in Bolsover, Derbyshire and will contain 12 homes to be sold under the First Homes scheme.
MAB will support Keepmoat by financially qualifying buyers and working alongside Homes England.
To use the scheme, borrowers cannot earn more than £80,000 in combined annual salaries or £90,000 in London. Prices for new-build properties must not exceed more than £250,000 outside of London, or £420,000 in Greater London.
A mortgage must be used for at least 50 per cent of the discounted purchase value. Lenders supporting the scheme will offer loans up to 95 per cent loan to value.
First Homes is the government’s latest initiative to help first-time buyers get on the housing ladder.
The government’s target is to deliver 1,500 home by autumn and has ambitions to sell at least 10,000 First Homes in total if there is demand from buyers.
Seven lenders have signed up to the scheme so far; Chorley Building Society, Darlington Building Society, Halifax, Leeds Building Society, Mansfield Building Society, Nationwide Building Society and Newcastle Building Society.
Councils have discretion to extend the discount to 40 per cent or 50 per cent if needed.
The discount will be passed on with the property sale to future first-time buyers, which the government says will benefit local communities and key workers who can be prioritised for these homes.
Mark Pender, business principal and new-build specialist at MAB, said: “New build is often complex in terms of mortgage advice and requires specialists to understand the finer details of schemes such as this.
“We’re proud to be one of the first and only mortgage broker firms supporting the government’s next big affordable housing project, with the Help to Buy scheme ending in 2023.”
Tim Wray, group development director at Keepmoat Homes, said: “It is great to be part of this initiative which will help even more people realise their dream of owning their own home.”
