The First Time Buyers' Initiative (FTBI) is a Government scheme, similar to shared equity agreements, to help people who would find it difficult to buy a home through a conventional mortgage and, as with other home purchases, the services of an experienced conveyancing solicitor are essential.

Key workers and those in other eligible groups can buy a new-build home on a specified FTBI development in a variety of sites throughout England.

Half of the homes will be allocated to key workers, such as nurses, teachers and police officers, while the remainder can be bought by other eligible first time buyers. Regional Housing Boards decide who qualifies in this latter category but in all cases the household income must be less than £60,000 a year.

There are qualifying criteria for both groups of applicants:

• Must be a qualifying first-time buyer unable to afford a new home. Applicants must not be able to buy a home suitable for their housing needs within a reasonable travelling distance of their work place without assistance.


• Must be able to demonstrate access to savings or sufficient funds to pay a deposit (which may be up to 5% of the purchase price), legal fees, stamp duty and other costs of moving.


• Must be able to sustain home ownership in the long term. Typically, applicants will be employed on a permanent contract of employment (there are exceptions for key workers). If self-employed, the applicant must be able to provide accounts for the last three years.


• Cannot already be a home owner or named on a home mortgage. If an applicant has had their name on a mortgage they will have to provide evidence that it has been (or is in process of being) removed.


• Applicants must have a good credit history.


• Applicants must take out a first mortgage with a qualifying lender.

Affordable homes for sale on designated developments

FTBI homes are only available on designated development schemes where the government has an agreement in place with the house builder to provide affordable homes for sale.

Potential home-owners who want to find a property in a particular area will need to use one of the 23 official regional HomeBuy agents in England, which act on behalf of the Government to administer the scheme.

Once a suitable home has been found, the buyer has to source an affordable mortgage, which with their deposit must make up a minimum 50% of the full purchase price. The remaining 50% will be paid by the Government directly to the house builder.

For the first three years after the purchase, the owner will have no fees to pay but after that there will be 1% a year of the amount contributed by the Government must be paid up to a maximum of 3% after five years.

Extra repayments of up to 10% of the market value can be paid to the Government during the ownership of the home and the property can be sold at any time. When it is, its market value will be decided independently and a percentage equal to the amount contributed through the FTBI scheme will be repayable.

FTBI home purchase and Healys solicitors of London and Brighton

As with the shared ownership scheme, there are extra aspects to be considered by buyers when compared with a conventional home purchase and that's where the skills, experience and attitude of residential conveyancing solicitors Healys can really help.

The FTBI scheme is available throughout the UK and Healys, which has offices in London and Brighton, is able to act for clients anywhere in the country.

Most first-time buyers are unsure of the procedures and legal complexities involved in buying a home but Healys lawyers offer not just a cost-effective and straightforward service but also pride themselves on communicating regularly with you to ensure the property transaction proceeds smoothly.

To find out how Healys can help you buy your first home, why not call for friendly no-obligation legal advice on our residential conveyancing solicitors' services for First Time Buyers Initiative.

For more information, you can request a call-back via the website, email partner Kiri Kkoshi, telephone 020 7822 4148 or associate solicitor Paul Miller telephone 01273 669 115