National housebuilder, Crest Nicholson Regeneration, is offering first time buyers in Birmingham the chance to get onto the property ladder with a deposit of just five per cent.
Three different schemes have now been launched at Crest Nicholson’s Park Central development in Birmingham city centre – FirstBuy, EasyBuy and NewBuy – all aimed directly at first time buyers struggling to save deposits of around £25,000 (the average amount currently needed for a deposit in the local area). Under the three initiatives at Park Central, purchasers need a deposit of just five per cent, meaning that this figure could fall by over two thirds.
Recent research by RICS has revealed that over a third of potential buyers in the UK are trapped in rented accommodation because they simply cannot afford the large deposits required by lenders in addition to constantly rising rental costs.
Ruth Williams, sales manager at Park Central, said: “So many young people are eager to get their feet onto the property ladder, but with such large deposits needed, many would-be first time buyers feel like they are facing a brick wall.
“To help reduce the amount needed for a deposit we have now launched two equity loan schemes at Park Central, FirstBuy and EasyBuy. One common worry surrounding these schemes is that purchasers think they won’t own 100 per cent of their home, but this is simply not the case. Under the government’s FirstBuy scheme, purchasers can own 100 per cent of their dream home for just 80 per cent of the cost. What’s even better is that the deposit needed under FirstBuy is just five per cent, meaning you can buy a two bedroom stylish apartment at Park Central with a deposit of just £7,200.”
Under FirstBuy a two bedroom apartment in the newly launched Trinity building can be purchased for just £115,000 – made up of a 75 per cent mortgage, plus a five per cent deposit – as the remaining 20 per cent is covered by an equity loan offered by Crest Nicholson and the Housing and Communities Agency (HCA), which is free for the first five years.* For those who don’t qualify for FirstBuy, Crest Nicholson has launched its own equity local scheme called EasyBuy at Park Central.
For those househunters not wishing to buy under an equity loan scheme, but still looking to purchase a property with a deposit of just five per cent, Crest Nicholson has also launched the government’s NewBuy scheme. NewBuy allows buyers to secure a 95 per cent mortgage with major high street lender Nationwide.
Ruth continues: “Buying a property really is an investment, and with the recent launch of the stunning two bedroom apartments in our Trinity building, young professionals in Birmingham could own a luxury two bedroom apartment in a prime location at the heart of the city.”
All three schemes have now been launched on the new two bedroom apartments in the Trinity building at Park Central which have been designed to a very high quality, boasting contemporary fixtures and fittings, double bedrooms and designer kitchens and bathrooms. For more information on Park Central and to arrange a viewing please call the sales team on 0121 666 4666. Alternatively visit the marketing suite, which is open daily from 10am to 5pm and is located at Park Central, Spring Street, Birmingham B15 2GD.
* From year six of the date of purchase an interest charge of 1.75 per cent is payable on the equity loan. The interest charge will increase annually by RPI plus one per cent from year seven.