Halifax and Nationwide to back Brown’s plans

Chancellor Gordon Brown will give details today of his plans to help first-time buyers onto the property ladder, including a shared equity scheme, backed by the Halifax and Nationwide.

The scheme will encourage lenders and housebuilders to take a stake in first-time mortgages, so that young couples can get onto the property ladder.

Brown is expected to tell MPs that the Halifax and Nationwide will help the government to enable first-time buyers to reach the property price of their first home, then benefit from the property is sold on.

Under the plan it is expected that buyers will find 75% of the house price, then the government and bank or society will put in 12.5% each. When the house is sold each party will keep their proportionate share of the profits.

Brown is also expected to announce that the four biggest housebuilders, Barratt, Lovell, Bellway and Redrow will also offer the shared equity scheme, making it so the government does not have to put in a stake