Mortgages
The First Homes scheme is intended to help people who would otherwise find it difficult to get on to the property ladder. For this reason, buyers must get a mortgage or home purchase plan that covers at least 50% of the cost of the home, after the discount has been applied.
As with any privately owned home, you can choose to remortgage or use equity release schemes, however this will be in relation to the discounted value of the home.
Stamp Duty
Currently first-time buyers benefit from not paying Stamp Duty on properties up to £300,000. Those in Medway on a first sale of a First Homes property would therefore be exempt from Stamp Duty.
The Stamp Duty calculation for a First Home is based on the amount of money that is actually paid for the home, after the discount has been applied.
Help to Buy ISA or Lifetime ISA
You can use a Help to Buy ISA or Lifetime ISA to buy a First Homes property, if the purchase also complies with the rules of the ISA schemes.
The ISA schemes have price caps.
For a First Homes purchase, these caps would apply to the price of the home after the discount has been applied.
Help to Buy: Equity Loan
First Homes is intended as an additional option for affordable home ownership.
The Help to Buy: Equity Loan cannot therefore be used for a First Homes purchase.