Six-figure earning households could be eligible for Your First Home – reports
The income cap for the Your First Home scheme will be set at £110,000, rising to £140,000 for buyers in London, reports suggest.
First reported by The Times, the higher income cap is reported to support professionals such as teachers and nurses who might otherwise be excluded.
It was previously reported that the eligible income would be capped at £90,000, which Samuel Mather-Holgate, managing director and IFA at Mather and Murray Financial, said sounded generous “until you put two ordinary public-sector salaries next to each other”.
He added: “A teacher and a nurse are not exactly plutocrats, yet they could find themselves treated as too wealthy for support while still priced out of the market.
“That is the problem with cliff-edge policy: one pound of income can decide whether you get a leg-up or are left on your own.”
The scheme allows first-time buyers to put down a 2.5% deposit, with a 20% interest-free equity loan from the government and a contribution from developers. The length of the interest-free period and contribution required from developers are yet to be confirmed.
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Mortgage lenders will lend the remainder to buyers.
The details of Your First Home will be announced by Chancellor John Healey at the Autumn Budget on 28 October.
