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First-time Buyers Initiative (FTBI) - frequently asked questions

What is the FTBI?

FTBI makes affordable homes available to first time buyers priced out of the housing market. It enables aspiring first time buyers, who cannot otherwise afford to buy a home outright, to buy a minimum of 50% of a new home on a designated FTBI development. The Government will hold the remaining equity of the home.

Buyers raise the mortgage and make repayments just on the portion they own. For the first three years of FTBI home ownership there are no other payments to make on the portion of the home’s equity a buyer does not own. After three years buyers will pay a charge to the Government.

Who can apply?

As indicated by the scheme name, it is for first-time buyers. Around 50% of the homes to be made available through the initiative will be for key workers. This initiative acts as a 'stepping stone' to assist buyers into full home ownership.

Where will FTBI homes be available?

The initiative is starting now with the aim of making FTBI homes available nationally over the next four years.

Can I buy more of my home later?

FTBI homeowners can also choose to increase their equity share at any time by purchasing more equity from the Government at the current market value. The minimum additional purchase is 10% of the market value.

What happens if I want to sell?

When owners sell their FTBI home, they will repay the Government its equity. So if a buyer initially purchased 75% it will repay the Government 25% of the value at the time they sell. A HomeBuy Agent will recover the Government’s repayment.

For more information, please contact:

Application and Enquiries team
Metropolitan Home Ownership
The Grange
Southgate
London, N14 6PW

Tel 020 8920 7777

Email housingoptions@mht.co.uk