Open Market HomeBuy (OMHB)

What is Open Market Homebuy?

Open Market Homebuy is a government backed scheme that aims to help certain groups of people who cannot afford to buy a home on the open market without assistance. These groups include first time buyers, key workers, social tenants, and people in priority groups on a housing register. The scheme provides access to extra money towards your purchase called equity loans which run alongside the conventional mortgage loan.

As of April 1st 2008, the two new products are:

Option 1 - MyChoiceHomeBuy

Please note that due to high demand, funding for this option has now all been allocated, for the 2009 / 2010 financial year. You are advised to consider other HomeBuy options, such as HomeBuy Direct, NewBuild HomeBuy and Rent to HomeBuy. For more details on any of these options please see our help to buy section, or contact us. There is no guarantee that waiting until further funding is released will mean that all the demand can be met. Purchasers are very strongly advised to pursue other options as outlined above.

MyChoiceHomeBuy is a shared equity product that has been developed by 8 housing providers in partnership with the Government and the Housing Corporation and will be administered by Metropolitan Home Ownership (MHO).

If approved for the scheme applicants can buy any property on the open market.

They can receive as much as a 50% equity share, or as little as a 15% equity share, to help buy the home of their choice subject to what they can afford and their housing need. On completion of purchase a monthly fee of 1.75% on the share bought with MyChoiceHomeBuy will be payable to MHO. This charge will be increased annually by RPI plus 1%

For more information visit the MHO website www.mho.co.uk

Option 2- Ownhome

Please note that due to high demand, funding for this option has now all been allocated, for the 2009 / 2010 financial year. You are advised to consider other HomeBuy options, such as HomeBuy Direct, NewBuild HomeBuy and Rent to HomeBuy. For more details on any of these options please see our help to buy section, or contact us. There is no guarantee that waiting until further funding is released will mean that all the demand can be met. Purchasers are very strongly advised to pursue other options as outlined above.

Ownhome is a shared equity product being launched by People for Places and the Co-operative Bank. Ownhome consists of two parts - a mortgage and an equity loan. Places for People will lend buyers between 20% and 40% of the value of their new home and The Co-operative Bank will offer a choice of any of their mortgages - fixed rate, tracker or discount, on the remaining 60% to 80%.

Ownhome customers will not have to pay interest on the loan for the first five years. After 5 years there is a fixed interest rate of 1.75% per annum on the Ownhome loan. From year eleven the interest rate on the Ownhome loan rises to 3.75% per annum for the remainder of the Ownhome loan period.

For more information visit the Ownhome website www.ownhome.co.uk

What type of property can I purchase?

You have to buy a property suitable for your households needs and within certain price limit restrictions. The property must be for sale on the Open Market. Properties being sold with other Government funded discounts, such as shared ownership, are not eligible for the scheme. Second hand properties must be in good condition and following a homebuyers survey must not need more than £5,000 worth of works.

For full details of Property eligibility please contact us.

How can I apply?

Both the new providers will be working closely with HomesHub to deliver the new products.

Information about the schemes and application forms are available through HomesHub, the HomeBuy agent for Merseyside. We will carry out eligibility checks and confirm if you have been accepted for the scheme. We will then pass your details on to the provider of whichever one of the two new products you have chosen, who will then work with you directly to help you purchase your new home.

If you do decide you want to apply for one of the new products please contact us as soon as possible as funding is limited and we need to notify the new providers of your interest.

You can apply here

If you have any queries about the new products please do not hesitate to contact us