Lovell has launched a brand-new shared equity scheme to help first-time buyers get on to the housing ladder.

Under the Lovell Shared Equity Scheme, which is available for selected properties only, buyers initially pay only 75% of the house sale price. Lovell lends homebuyers the outstanding 25% with no interest or rent to pay. The loan sum is repaid after ten years or when the buyer wishes to sell or to redeem their mortgage - whichever is sooner. The sum repaid will be 25%of the current market value of the property. Purchasers also have the opportunity to make lump-sum payments to pay off the outstanding amount during the ten-year period.

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"With the cost of buying rapidly rising as the credit crunch hits lenders, a lot of areas are increasingly beyond the reach of first-time homeowners," said Lovell National Sales Manager Joan Cartwright. "As a national housebuilder, we've set up the Lovell Shared Equity Scheme specifically to help people looking to buy their first home as well as those seeking to 'move up' the property ladder."

(CD/JM)