How HomeBuy works
The Government's HomeBuy scheme allows you to buy a property anywhere in England. A Housing Association will assess how much you can afford and will set you an upper purchase price limit. You are given a grant of 25% towards the purchase price, leaving you to raise the balance of 75% by way of a mortgage, or by way of mortgage plus savings. The 25% grant is interest free so you don't have to make monthly payments. The grant is, however, repayable when the property is sold.
Having retained a 25% interest in the property, when the property is sold the Housing Association take 25% of the sale price back. This is sometimes called an 'equity loan.'
For more information about HomeBuy and to find out if you are eligible contact your local Housing Association - go to www.housingcorp.gov.uk for a list. You can also find out more at www.direct.gov.uk and www.communities.gov.uk.
HomeBuy mortgages - what's on offer
The mortgages available on HomeBuy tend to be limited to a few lenders, and to particular mortgage products, often requiring a deposit. However, as increasing numbers of people are looking to shared ownership to get them on to the property ladder, there are now lenders prepared to lend up to 100% of the share you are buying. At that level of borrowing, however, the range of discounts often offered to first time buyers may not apply.
Points to note
If you are looking for a mortgage for HomeBuy it may be hard to find on the high street. Your local branch, even of those lenders that deal with the schemes, may be unaware of the products they offer or on what terms. Because it is a specialist area of lending that they do not deal with every day, staff may give incorrect information. Many mortgage brokers also have little or no experience of this area, so it pays to get your information from a broker with some knowledge of this particular market.
Mortgage Dimensions makes finding the right HomeBuy mortgage easy for you...If you are looking for the right HomeBuy mortgage to get you onto the property ladder for the first time, we can give you straightforward information about your mortgage options and jargon-free advice. It makes sense to take advantage of our expertise and inside knowledge of the mortgage market - and save yourself the time and worry. Not only can we recommend the HomeBuy mortgage most appropriate to your needs, but we'll look after your application throughout the whole process, from beginning to end, ensuring that everything goes smoothly, with the minimum of fuss and no delay....and there's no fee for out service!
Enquire online or call to talk to us on
0845 021 0212
