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Getting a foot on the property ladder!
There are a number of products to assist people
into Low Cost Home-ownership. Please see below
for further details on the options available
or contact us on 0845 6585 420 for information
or to request an application pack.
You can apply online, please go to the 'Apply
Online' page.
Am I eligible ?
To qualify for the HomeBuy scheme if you are
one of the following groups
| You are currently living in a social
rented property, for example you pay rent to
a local council or housing association.
| | You are a key worker unable to afford
to buy a suitable home in the area they live
or work.
| | You are in priority housing need on a
housing register.
| | You may also qualify as a first time
buyer if you consider you are unable to purchase
a home outright. Your household income must
be less than £60,000 (this income level
varies from region to region and it would be
advisable to contact us for clarification on
this )
| | You have experienced a relationship breakdown
and have some equity from your settlement, but
you are unable to afford to buy a home outright
to meet your housing requirement. |
Once in receipt of a HomeBuy application, Home2own
will assess it and establish your eligibility
for the Low-cost Home ownership programme. We
will then advise you of the options available
in the area you wish to live.
Open Market HomeBuy
Open Market HomeBuy is an affordable way for
first time buyers and other priority groups,
to own a home of their choice. This is a Government-backed
equity loan scheme for people who cannot afford
to buy a suitable home for their housing need.
| Once the applicant's eligibility is
assessed, there will then be a financial assessment
and a maximum property value set, based on their
financial circumstances and housing requirement.
| | The applicant is then in a position
to choose a property. The type of property must
be approved by the equity loan provider before
progressing further.
| |
The applicant funds their percentage
of the value of the property with a mortgage
and/or any savings they may have, with the
remainder of the purchase price provided
by their chosen equity loan provider OwnHome
or MyChoiceHomeBuy.
| | The loan is repaid when the property
is sold or additional shares can be purchased
in the future, when circumstances allow. |
Funding for this product is limited and due
to popular demand there may be times, when there
is no funding available.
If you choose the Open Market HomeBuy
product your application will be forwarded to
one of the organisations, now offering the equity
loans.
(Please see below for more details of these
products).
New products launched 1 April 2008.
OwnHome
This product is offered to eligible applicants
by Places for People in partnership with
the Co-operative Bank. OwnHome
can offer people a minimum of 20% or up to 40%
in an equity loan, with the remainder being
funded by choosing one of the mortgage products
on offer by the Co-operative Bank. There are
no extra premiums or charges. For the first
5 years the purchaser will pay only their monthly
mortgage repayments. After this period a charge
of 1.75% fixed interest rate per year on the
equity loan will be payable. This will continue
until Year 11, when the interest rate will increase
to 3.75% interest per year for the remaining
life of the loan.
You can call OwnHome on 0845 607 0110
MyChoiceHomeBuy
This product is being administered by Metropolitan
Home Ownership and is one of eight housing providers
who have developed MyChoiceHomeBuy in
partnership with the Government and the Housing
Corporation. It offers the purchaser the flexibility
of using a range of 'qualifying' lenders. These
lenders are regulated by the Financial Services
Authority. MyChoiceHomeBuy will provide
between 15% and 50% subject to affordability
and housing need. The balance will be funded
using a conventional mortgage or savings. The
purchaser will pay a low rate of 1.75% per annum
on the equity loan for the first year and this
is index linked (rising at RPI plus 1%).
New Build Shared Equity
You can purchase a newly built home that has
been developed for private sale on the open
market, either off-plan or from existing available
new properties, with a shared equity loan from
either MyChoiceHomeBuy or Ownhome
(described above). The amount you purchase depends
on how much you can afford to buy, the minimum
share is 50% of the property value.
You can apply for either of these products
either through Home2own, your local HomeBuy
Agent or directly with the equity loan providers
New Build HomeBuy
New Build HomeBuy formerly known as Shared Ownership,
is a Government funded scheme. This enables
people to buy a share in a brand new home on
a part rent/part buy basis. Would be homeowners
will be able to buy a share ranging from 25%
to 75% (this will vary from scheme to scheme),
depending on what you can afford. A discounted
rent is then payable to the landlord, on the
share of the home that you do not own. You will
be able to buy further shares in your homes
as your income allows.
For information on available properties in your
area, please go to the Property Search page.
First Time Buyers Initiative (FTBI)
FTBI is another affordable homes scheme specifically
aimed at first time buyers. This scheme enables
aspiring first time buyers, who cannot otherwise
afford to buy a home outright, to buy a minimum
of fifty per cent of a new home on a designated
FTBI development. Government will hold the remaining
equity, with buyers raising a loan and making
mortgage payments on their portion of the home.
For the first three years of FTBI home ownership
there are no other payments to make on the part
of the home's equity a buyer does not own. After
three years buyers will pay a fee to Government
(through the National HomeBuy Agent) of 1% per
annum on the un-owned equity. This fee rises
by one per cent annually reaching a maximum
of three per cent after five years in the property.
Because it is made affordable, FTBI is a "stepping-stone"
to assist buyers into full home ownership. When
owners sell their FTBI home, they will repay
Government its equity. So if a buyer initially
purchased 75% it will repay the Government 25%
of the value at the time when the property is
sold.
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 ten per cent of the market value.
Other Affordable Home Ownership Initiatives
From time to time there are other low cost
affordable home opportunities that arise and
it is best to contact us on 0845 6585
420 to find out what is available as well as
keeping in touch with local authorities in the
area - available on the 'Links' page.
Types of schemes available can include:
Shared Ownership Resales - As and when
New Build HomeBuy Schemes become available on
the market we will promote these on our property
database and advise you of their availability
if they fit with your location needs.
Local Authority Low Cost Sale Schemes - Within
Worcestershire a number of local authorities
have set up Low Cost Schemes where the price
to buy a home is discounted from the full market
value.
All of these products are designed to suit
a wide range of personal circumstances and we
suggest you seek financial advice to enable
you to make an informed decision about which
of the above products, best suit your personal
circumstances.
You will be fully responsible for all maintenance
charges and outgoings, in the same way as any
other homeowner. In the case of flats/apartments
you are also likely to have to pay a service
and management charge and there is usually a
sinking fund set up to cover the cost of longer-term
works.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP
UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT
SECURED ON IT.
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