18 November 2008
MY CHOICE Homebuy allows a key worker or first time buyer to purchase their first home from the open market so not restricted to New builds. A "Government Equity Loan" of between 15 and 50% of the value of the home is then taken out and charged at 1.75% with the payback being from the sale of the home in the future at the original percentage taken from the sale price.
This scheme can be run alongside a mortgage loan with say Halifax who do not require any deposit from the client. They will use the 1.75% interest as a monthly commitment when assessing the client on affordability.
OwnHome is different to "My Choice Homebuy" in these ways:
"Equity Loan" is between 20 and 40%. No interest is payable to the Government for first 5 years. 1.75% will then be charged for next 5 years. 3.75% from year 11 onwards.
Lenders are restricted to just one which is "Cooperative Bank".Still can buy from the open market so Not restricted to New builds.
Useful link below:
First Time Buyer Initiative New build scheme which locally in London is through a developer called "Tower Homes" - 0845 2308099 website - www.housingoptions.co.uk
This scheme allows the client not limited to "Key Workers" the opportunity to buy a New build home with a share of at least 50%. The remainder is with an "Equity Loan" from the government which is paid back at the original percentage given of the properties sale price. The first three years after the client buys they just make their normal mortgage payments. After three years, they pay a monthly fee to the government (through the HomeBuy Agent) of 1% a year on the unowned equity. This charge rises to 2% after 4 years and 3% after 5 years and thereafter.
Useful link below -
HomeBuy Direct is the recently publicised scheme that is similar to "My Choice Homebuy" but restricted to "New Build Homes" and an "Equity Loan" of up to 30% at 1.75% interest. This has not received a final paper so cannot be used at this time.
Useful link below:
Other useful links below:
Am I eligible?
Share Ownership info
First time buyer new build scheme
No comments have been posted.
RAILTON ROAD SE24,
Leasehold, For Sale
TEA TRADE WHARF SE1, £1,295,000 , For Sale
TOWER BRIDGE WHARF E1W, £550 , per week, For Sale
PROVIDENCE SQUARE SE1, £1,600,000 , For Sale