HomeBuy Direct is a new shared equity scheme designed to help up to 18,000 First-Time Buyers nationwide into affordable home ownership. The scheme has been allocated £400m of Communities and Local Government funding.
The scheme will be offered on specific new build properties brought forward by developers. Buyers will be offered an equity loan of up to 30 per cent of the purchase price, co-funded by Government and the developer.
How does it work?
You buy a minimum of 70% of the market value of a property. An equity loan of up to 30% is provided to assist your purchase. There are no payments on the loan for the first five years. After five years there is a fee of 1.75%, which increases annually in line with inflation. You will need to raise a mortgage to purchase through this scheme. You can also use any savings you may have to contribute as a deposit towards your share.
What properties are available?
Please see the links on the left hand side for available properties. Further properties may be added from time to time so check back regularly!
Please also have a look at the HomeBuy Direct booklet for properties in Essex, Kent and Sussex.
What are my options after buying through HomeBuy Direct?
You can buy additional shares at a later date until you own 100%. This is calculated on the current market value at the time that you purchase the additional shares.
If you wish to sell your property, the equity loan is repaid as a percentage of the market value at the time of sale.
Please click here to view the HomeBuy Direct buyers' guide.
Am I eligible for HomeBuy?
Please click here to find out.
Message for private developers
The Homes and Communities Agency has asked us to direct all enquiries from private developers wishing to offer HomeBuy Direct to information on their website at this link:
http://www.homesandcommunities.co.uk/kickstart_housing
Any queries should be emailed to the Homes and Communities Agency at HomeBuy.Direct-Enquiries@hca.gsx.gov.uk.
Alternatively the person enquiring should call the HCA's general contact number which is 0300 1234 500.
Your home is at risk if you do not keep up rent and mortgage repayments or payments on other loans secured on it.
Please note that the value of properties can go down as well as up.