Walton Homes has introduced a shared equity scheme to enable buyers to purchase their dream home while only raising 80 per cent of its value.
The developer is giving potential buyers the opportunity to take advantage of an interest-free loan to the value of the remaining 20 per cent of the property’s price.
The scheme was initially introduced by the business in 2012, receiving an excellent response, and Sarah Summerton, Director, said the team had decided to bring it back on selected plots, subject to availability.
“A home is the biggest purchase a person will ever commit to, and it can be daunting to raise deposits and obtain mortgages. We wanted to do something to help people secure their dream home.
“Our Lion’s Share scheme was well received seven years ago, and we felt the time was right to bring it back. It works in a similar way to the Government’s Help To Buy initiative, except that we act as the lender. Subject to qualification for the scheme, we will lend the buyer up to 20 per cent of the cost of their home, meaning that they can purchase the home with a five per cent cash deposit and a 75 per cent mortgage,” she explained.
It would enable buyers to purchase a £250,000 house with a £12,500 deposit and a 75 per cent mortgage of £187,500, with Walton Homes lending them the remaining £50,000. The loan is repayable over the following five years without any interest, and without any early repayment penalties being applied.
Sarah added: “The initial feedback we’ve had from potential buyers has once again been extremely encouraging, and we hope that ultimately, we’re able to provide an additional boost to help people buy the house they really want, rather than see them apply for higher mortgages to repay at fluctuating levels of interest over a longer period of time,” said Sarah.
Walton Homes currently has developments in Stafford, Linton Heath, Rugeley and Burton-on-Trent, with further sites in Handsacre, Upper Longdon and Tatenhill coming soon.
For further information on eligibility, the Lion’s Share scheme, and the properties included in the initiative, call 01543 412288.
For details of Walton Homes’ developments, visit: www.waltonhomes.co.uk.
* Available on selected homes and subject to qualification.