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Before you buy a home through HomesHub, we will assess your application to determine whether you are eligible for the scheme, and whether you can afford it. Apply now to see if you can buy a home through HomesHub.
Which Low Cost Home Ownership Products
are available?
HomesHub provides a One Stop shop for all Low Cost Home Ownership schemes in Merseyside. There are three main schemes on offer to buyers, which are as follows:
The First Time Buyers Initiative (FTBI)
FTBI is part of the Government's new "HomeBuy" low cost home ownership initiative and will be available in the Merseyside area through Homeshub.
Where will FTBI homes be available?
The initiative is starting now with the aim of making FTBI homes available nationally over the next four years. Homes will only be available on designated schemes where the house builder has agreed to provide FTBI properties.
What is FTBI?
It enables first time buyers, who cannot otherwise afford to buy a new home, to purchase a new property with an affordable mortgage (minimum 50% of the total purchase price) and additional Government assistance.
For the first three years of FTBI home ownership there is nothing to pay on the amount which the Government contributed
After three years buyers will pay a fee to Government (through a HomeBuy Agent) of one per cent per annum on the amount Government funded. This fee will increase each year by a fixed percentage reaching a maximum of three per cent after five years in the property.
Because it is made affordable, FTBI is a "stepping-stone" to assist buyers into full home ownership.
When owners sell their FTBI home, they will repay Government's contribution by way of a share of the sale proceeds. So if Government initially assisted the purchase with a 25% contribution, the repayment will be 25% of the total property value when it is sold.
FTBI homeowners can also choose to reduce the amount payable to Government at any time by making repayments at the prevailing market value. The minimum additional repayment is ten per cent of the market value. Repayments will reduce the Government's entitlement to a share of the future sales proceeds and also the fees payable by buyers after three years of ownership.
Who can apply?
Anyone who cannot afford to buy a suitable home on the open market and is a first time buyer can apply.
Around fifty per cent of the homes to be made available through the initiative will be for key workers such as nurses, teachers and police officers living across England. The remaining homes will be available to those groups identified as priorities by Regional Housing Boards.
For certain groups, a maximum household income of £60,000 will apply. Lower limits may apply to other eligible groups. Priority will be given to people currently in social/private-rented or temporary accommodation.
As well as being in an eligible group to purchase, applicants for FTBI homes must be able to demonstrate access to savings or sufficient funds to cover the costs of buying which will include solicitor's fees, stamp duty, a reservation fee and typically a 5% deposit.
The above information is a broad outline of the scheme, the amount of mortgage or grant funding obtained by each applicant will depend on individual circumstances. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
How do buyers find out more and make an application?
For more information about the scheme, availability of FTBI properties in the Merseyside area, and how to make an application please contact Homeshub on 0845 603 4559
New Build Homebuy.
To many people, this scheme is known as Shared Ownership. The buyer buys a share of their home, usually 50 or 75% with the developer keeping the other share. The buyer pays a small rent charge on the developer's share of the property, which is up to 3% of the developer's equity in the property.
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
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 a 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
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.
Q: 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.
If you have any queries about the new products please do not hesitate to contact HomesHub on 0845 603 4559
Social Homebuy.
Social HomeBuy will provide new opportunities for existing social tenants who can't afford or don't have the Right to Buy or Right to Acquire. The current Voluntary Purchase Grant scheme for housing association tenants is merged into the new scheme.
This scheme will allow a social tenant to buy a share of the equity in an existing housing association or local authority home, bought at a discount.
Tenants will buy a minimum initial share of at least 25% of a home. The remainder of the equity will be held by the housing provider. The landlord will be able to levy a charge of up to 3% on their equity. A lower target average for the charge will be set at 2.75%.
For more information about Social Homebuy please contact HomesHub on 0845 603 4559. Not all social landlords participate in the scheme, applicant and property eligibility criteria also apply.
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