First HomeBuy Direct deal gets Daniel and Sarah their first home

This ambitious young couple are blazing a trail for first time buyers across the North East by completing the region's first deal using the HomeBuy Direct scheme.

Daniel Wilde and Sarah Hill are now celebrating moving into their new home - and the fact they only had to pay three quarters of the asking price.

The Government's new HomeBuy Direct scheme provides an interest-free loan for up to 30% of the price of a new home, to help get people on the housing ladder, and anyone can apply.

Daniel and Sarah are the first people in the Tyne & Wear area to benefit from the Government's new HomeBuy Direct scheme, which has provided an interest-free loan to get them on the housing ladder.

The couple have just moved into their brand new house in Hetton le Hole, near Sunderland, after Isos Group - the local HomeBuy agent - worked with housebuilder Gentoo to make the deal happen.

Daniel and Sarah have been able to buy their new home with a mortgage for 74% of the price (£85,100), and a loan picking up the other 26% (£29,900) - after paying only a £500 reservation fee to secure the property rather than a full deposit. The couple previously lived apart in their parents' homes.

Their five year, interest free loan is jointly funded by the Government's Homes and Communities Agency (HCA) and Gentoo.

HomeBuy Direct is playing a vital role in keeping first time buyers in the housing market - and helping housebuilders keep on selling when conventional deals have been scarce due to lenders demanding large deposits.

Daniel, 22, a web developer for the NHS in Gateshead, said: "We saw a newspaper advert about HomeBuy Direct and it went from there. We had been looking at house prices for new build properties and we were looking at £150,000 for some, but with this Gentoo house, using HomeBuy Direct, it was a lot cheaper.

"We got a loan for 26% of the sale price, which makes it much more affordable."

Sarah, also 22, works for retail chain Currys. The couple have recently moved into their new home on St Cuthbert's Close in Hetton.

Ian Heginbottom, director of development for Isos Housing Group and who heads up the HomeBuy scheme for the company, said: "We are delighted for Daniel and Sarah that they have been able to buy their first home with our help.

"We are working closely with housebuilders like Gentoo to ensure anyone who can benefit from HomeBuy Direct gets the opportunity to buy their own home.

"We hope all the major lenders in the mortgage market will recognise what a great - and secure - opportunity the scheme provides to keep lending even in tough economic times."

Ian Grant, managing director of Gentoo Homes, said: "There are currently few opportunities for people to access the house buying market and what products are available can be complicated for the consumer. This new initiative recognises the Government's commitment to unlock this problem for buyers and re-energise the property market.

"So far the initiative has proven to be very popular and Daniel and Sarah's sale was one of four to complete on the same day, as a result of the scheme. The combination of Gentoo quality products with this HomeBuyDirect initiative means that anyone looking to buy their own home should definitely explore this as an option."

To qualify to benefit through HomeBuy Direct, applicants need to have a household income below £60,000 and be unable to purchase a home on the open market.
A five year, interest free loan of between 15% and 30% is provided to the buyers by the developer and the Homes & Communities Agency (HCA). Then after five years, a fee of 1.75% per year applies, and that will increase annually in line with inflation.