New choice home buy

sassybabee33

Just been reading on our local shared ownership website that from 1st April a "new choice home buy" is coming avaliable.

You choice a property on the open market, you purchase 50%( or more if you can afford), the other % you pay an interest fee of 1.5%. This amount is to be repaid on the sale of the property.

It says that "you" would be the owner of the house. So would you be able to take a secured loan out to purchase the other percentage?

Im not going be doing this immediatly,want to save a bit,and whats going on in the current market at the moment. Just looking for the future.

mariagti

oh really this sounds good, i have been looking at renting as cant afford mortgage. But any more info on this would be great!:D

robpw2

you can tak out a secured loan to secure other percentage if you have the permision of the company who are buying the other 50%

its a great idea in principle .

Im currently looking to do same

mariagti

Just read a bit about it.Says you have to be a key worker or on housing register

tanikk£

There was a similar scheme for a while, OMHB (GLO) maximum loan granted - 30-ish%, but with no interest payable at all

Alleycat

mariagti wrote: »

Just read a bit about it.Says you have to be a key worker or on housing register

Or eligible under the first time buyers initiative as detailed in your local Housing Strategy if it is the same as the open market homebuy. Max income £52,000ish.

wymondham

why are key workers so special? - i thought everyone had a right to buy their own home?

Addy1

wymondham wrote: »

why are key workers so special? - i thought everyone had a right to buy their own home?

Of course everyone has the "right" to buy there own home. As long as you can afford it you can buy whatever you want.

Key workers are essential (imagine a town without teachers, nurses, police officers) and they are totally priced out of the market in many areas, therefore leading to a shortage in those areas. This is an incentive to help such essential people live nearer to where they work, thus providing for the local community.

My partner is a copper and he gets less help from such schemes than those in the South East as we live in a more affordable area. However would be entitled to some of the schemes as as a single bobby you cannot afford a mortgage here on any property.

rizel23

is there anywhere i can get some more information on this? Thanks

CYBERCIDERSAVER

mariagti wrote: »

Just read a bit about it.Says you have to be a key worker or on housing register

Getting on the housing register is easy. Just fill out a form. You don't have to be a 14 year old mum of three with a crack habit to be on the register.

We signed up expressly for shared ownership. We didn't want a council house. (otherwise I could have ended up living next to the in-laws:eek: )

We also signed up with Home2Own, which in our area operate a register which is a register all the "homebuy" agents use to offer houses to.

http://www.housingcorp.gov.uk/server/show/nav.2128

Hope that helps

tinkerbell1985

http://www.housingcorp.gov.uk/server/show/nav.2129

This website will tell you all you need to know about MyChoice HomeBuy and Ownhome.

The schemes are designed to help anyone on a household income between £20,000 - £60,000, but certain people will have priority. Including Keyworkers (NHS Nurse, Teachers, Firefighters etc etc), those in housing association/local authority properties, those registered as priorities on the local Housing Register and other priority groups recommended by the Regional Housing Board.

I work for one of the Homebuy Agents in the South so I deal with Low Cost Home Ownership on a day to day basis.

I think depnding on where you live will depend on how 'easy' it is to get onto the housing register. They don't neccesarily take just anyone on. The Housing Register is there for people with a genuine housing need. You can only find out by asking though - I imagine it may be different all over the country.

As for if you can take out a secured loan to purchase the rest of the property, I would say that is highly doubtful. On the old Open Market Homebuy (OMHB) scheme you were only able to remortgage and further borrow to help with home improvements, not to consolidate loans or something like that. Whoever you take the loan from (the housing association for My Choice HomeBuy, or Places For People for OwnHome) will have a 2nd charge on the property, so would have to agree to secured loans being taken out and this is highly doubtful as it would put their investment at risk. I'm not 100% about that as the new scheme was only introduced on 1st April & so we have no clients ready to pay back the loan on the new scheme yet, but this is what I would believe to be the case!

The Schemes

My Choice gives you a loan between 15-50%
Own Home gives you a loan between 20-40%

The My Choice HomeBuy scheme has an interest charge on the loan given of up to 1.5% per annum (payable monthly)

Whereas the OwnHome (through Places for People) have no payments on the loan for the first 5 years, then in years 6-10 there is a fixed interest rate of 1.75%, then in year 11 the interest rate is 3.75%.

My Choice allows you to gain a mortgage through any High Street Lender (so main banks and building societies) NOT sub prime lenders.

With Ownhome, the mortgage has to be through The Co-operative Bank (although they offer various mortgage products)

I hope this helps people thinking about purchasing a property through the Low Cost Home Ownership schemes. They are very good schemes, so definitely worth thinking about!

The link at the top is to the Housing Corporation (who govern all the housing associations & schemes etc). This site will provide you with the contact details for your local Home Buy Agent (Zone Agent) who will accept your applications for the Low Cost Home Ownership scheme.

Sorry to ramble on!!!