HomeBuy Direct helps you to purchase a new property, on a designated development.

Through HomeBuy Direct, you could receive an equity loan of up to 30% towards your home. This is part funded by the developer, and part funded by the government.

You will need to take out a mortgage for the remaining minimum of 70%. You will still own 100% of the title to your home. For the first five years of HomeBuy Direct home ownership, there is nothing to pay on the amount that the government and the developer contributed to your purchase. After five years, you will pay a fee to the government of 1.75% per annum on the outstanding amount of the equity loan. This fee will increase each year by the RPI plus 1%.

When you sell your HomeBuy Direct home, you will repay the HomeBuy Direct assistance from a share of the sale proceeds. So, if the government and the developer initially assisted the purchase with a 30% contribution, the repayment will be 30% of the total value when it is sold.

After 12 months of ownership you can also choose to make part repayments of the HomeBuy Direct assistance at the prevailing market value.

We would strongly advise seeking independent financial advice, this will help you to understand the costs involved, and secure the best mortgage product for you.

Is it for me?

HomeBuy Direct homes are available to people who cannot afford to buy a home on the open market and earn less than £60,000 per annum. Applicants should be buyers looking to own a home for the first time, although if you are looking to buy a new home after a relationship breakdown you will also be considered. You will need to be able to demonstrate you have some savings towards the deposit and other costs. You will also need to be employed. For further information, see our eligibility section.

How to apply

You will need to fill in a HomesHub application form. It is also advisable to look at developments in your area, to get an idea of what is available.

To apply click here

If you have any queries contact us

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