Open Market HomeBuy is a low-cost government-backed home-ownership programme that aims to help people to secure 100% funding of the value of their first home. It is a flexible equity loan scheme designed to help households earning up to a maximum household income of £60,000 a year to buy their own homes on the open market.
There are two Open Market HomeBuy products, which are designed specifically to help local authority and housing association tenants, key workers and others who are not able to afford to buy a suitable home in an area where they live or work without assistance.
Both products are available throughout England and have been designed to suit a wide range of personal circumstances.
MyChoiceHomeBuy
MyChoiceHomeBuy is part-funded by the Government and is offered by eight housing associations, each of which is an equity loan provider in its own right.
Ownhome
Ownhome is provided by a partnership between Places for People and the Co-operative Bank and is part-funded by the Government. Places for People is an equity loan provider in its own right.
Key features of Open Market HomeBuy
- You can choose between two distinct products, MyChoiceHomeBuy and Ownhome;
- You can borrow between 15% and 50% of the value of the property at a low, or no, interest rate;
- If you qualify for a mortgage of £110,000, for example, you could potentially purchase a property worth up to the current national house price average of £220,000;
- If you took up MyChoiceHomeBuy, you could get your conventional mortgage from a range of lenders; and
- If you opted for the Ownhome product, you would have a five-year interest-free period on your equity loan.
For both products, when repaying the equity loans, you would have to share any increase in the property’s value with the equity loan provider.
How do I apply?
Your equity loan provider should be your first point of contact for information about the scheme. You may like to contact an independent financial adviser, who will be able to provide advice about the costs associated with an equity loan and a mortgage. Your local HomeBuy Agent may be able to provide contact details for independent financial advisors.
You can find out more about Ownhome at www.ownhome.co.uk or by calling its information line on 0845 607 0110.
Or read the whole webpage at http://www.housingcorp.gov.uk/server/show/nav.2129