Ownhome 

What is Ownhome?

Ownhome is an equity loan scheme, designed to help people who cannot currently afford to purchase suitable accommodation make their first step onto the property ladder.

How does it work?

Ownhome is available throughout England to those who have a household income of less than £60,000. It allows buyers to borrow up to 100% of the value of a property through an equity loan of between 20 and 40% with Places for People and a conventional mortgage for the remainder with The Co-operative Bank.

The Ownhome loan from Places for People effectively tops up the mortgage from the Co-operative Bank. The loan is interest free for the first five years, after which there is a fixed interest rate of 1.75% p.a. on the Ownhome loan. From year eleven of the Ownhome loan the interest rises to a fixed rate of 3.75% p.a. for the remainder of the loan period.  You can also use any savings you may have to contribute as a deposit towards your share.

As an equity loan, the value of the Ownhome loan stays at a constant percentage of the property’s value. Therefore if the property’s value increases the amount to be repaid will rise but, correspondingly, if the property’s value falls the loan will decrease.

Unlike some affordable home ownership schemes, Ownhome is available on any property that meets the buyers’ needs, and does not have to be at a specific development.

What are my options after buying through Ownhome?

You can repay all or part of the equity loan at any time during your mortgage term. At the end of your mortgage, the equity loan must be repaid in full calculated on the value of your home at the time of repayment.

If you wish to sell your property, the loan is repaid as a percentage of the market value at the time of sale.

To find out further information contact Ownhome directly on 0845 607 0110 or visit their website www.ownhome.co.uk  


Click here to view the Ownhome leaflet.