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If David Cameron's proposed 'dramatic shift' in housing policy has you racking your brains in confusion, then we’re here to help. At Butcher Residential, we firmly believe that property needn’t be complicated. If you're a first time buyer who is new to the market it can seem very complex, but worry not. We have created a guide to simplify the changes, and to help you onto that first step of the property ladder. 


The Starter Homes Scheme 


  • Houses that are worth up to £450,000 in London and £250,000 in the rest of the UK are offered for sale at 20% below market rates 


  • The people looking to buy these homes must be first-time buyers under the age of 40 


  • The same buyers must not sell or rent the property for the next 5 years 


Though this scheme is great for saving money on the overall cost of the house, it does not solve the problem of generating the funds needed for the initial deposit. If that’s where you are falling short, then these next two options may be for you. 


The Help to Buy Scheme 


Option 1- Equity loan 


  • The government will lend you up to 20% of the cost of your new-build home, meaning you only need a 5% deposit 

  • For example, if the government lent you 20% and you invested 5% you would have 75% of the remaining mortgage left to pay back yourself 

  • You aren't charged any fees on the amount the government has loaned you until after 5 years of owning your home 


Option 2- Mortgage guarantee 


  • The government offers lenders the chance to guarantee their mortgage loan 

  • You are still solely responsible for your mortgage repayments, but if you are ever in a position where you can't pay back your mortgage, the government are liable for a percentage of it  

  • This is turn makes you a safer investment for banks to offer you a larger percentage mortgage e.g 80-95% 


To register for updates on the Starter Home Scheme visit and for more information on the other help that is available, visit