Low-Cost Home Ownership Schemes
- If you want to get a foot on the property ladder but house prices are out of reach, all is not lost.
In conjunction with a variety of Government initiatives Countrywide Mortgage Services can help you find a way forward and give you a helping hand to home ownership
Countrywide Mortgage Services support a number of low-cost home ownership schemes and, if you are eligible, we can help you find a mortgage to fund your first property purchase.
Who can apply?
The schemes are open to a range of people who require help buying their own home and are unable to afford to buy a property in the regular way:
- Social Tenants
- Serving armed forces personnel
- First Time Buyers
- Individuals who have previously owned property but can’t afford to buy one now
If you fall into one of the categories above and your household income is £60,000 per year or less, you may qualify for help.
There are two broad product types under the HomeBuy initiative (known as ‘FIRST STEPS’ in London):
- 'FirstBuy' (Equity Loan)
- 'Shared Ownership'
Under the FirstBuy scheme an equity loan is provided by the Government and the house builder. The value of the equity loan can be up to 20% of your intended property purchase price, and there will be no fees charged on this loan for 5 years. After 5 years you will be required to pay an annual fee based on the loan's value.
The value of the 'equity loan' will increase or decrease in line with the value of your property
Example: If you purchase a property for £100,000 using a 20% equity loan you will always owe 20% of your property's value. So, if your property value rises to £110,000 you will owe £22,000, if your property's value falls to £90,000 you will owe £18000.
The remaining percentage of the purchase price will need to be funded by yourself using a mixture of savings (the deposit) and a mortgage. This means that with FirstBuy it is possible to move with only a 5% deposit.
Under the FirstBuy scheme you can sell your home at any time however you will be required to repay the equity loan in full.
The 'shared ownership' scheme covers certain new build properties in England and allows you to buy part of a property and pay rent on the outstanding share.
At the time of purchase the maximum share that can be purchased is 75%, the minimum is 25%. The share you purchase will need to be funded by yourself using a mixture of your savings (the deposit) and a mortgage.
The housing association will purchase the remaining share and charge you rent. If you wish, you will be able to purchase further shares in your home at a later date.
Countrywide Mortgage Consultants are on hand to explain the options available, help you find your nearest HomeBuy agent, and recommend a suitable mortgage scheme.
Please note that availability for some schemes depends on government funding and eligibility is at the discretion of your HomeBuy agent.