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Barratt backs HomeBuy direct with 3,000 homes

Barratt is offering 3,000 new homes to a new Government scheme offering homesbuyers the chance to buy for 70 per cent of the purchase price.

The homes across the country will be given up to the HomeBuy Direct scheme.

Barratt will match the Government’s funding pound for pound in the new venture to provide the 30 per cent equity loan to the homebuyer.

The buyer finances the remaining 70 per cent either through a mortgage, a deposit or a combination of the two.

Under the scheme, buyers will be protected against possible falls in property values up to 30 per cent as the Barratt/Government equity share will absorb price risk.

In addition, there is no interest to pay on the joint Barratt/Government equity stake for the first five years, although a fee will be charged from year six onwards.

Barratt chief executive Mark Clare said: “Customers will be buying into the market at today’s prices, not the high 2007 prices.

“And the loan for 30 per cent of the property’s value makes it even easier for them finally to own the roof over their heads.”

Housing minister Margaret Beckett said: "It is great news that major developers like Barratt are backing the Government's HomeBuy Direct scheme and working with us to help first-time buyers on to the housing ladder.”

"With many more deals like this in the pipeline, they will help deliver much needed affordable homes and support the house building industry.

“It is part of a range of actions we are taking to help overcome the current challenges in the housing market and we will continue to look at what more we can do in the future.”