HomeBuy is an affordable way of buying a property and enables First Time Buyers or those who are not already a Home Owner to get onto the property ladder.
With the HomeBuy scheme you will own 100% of your property but will only have to pay a mortgage on 50-70%, keeping your monthly mortgage payments affordable.
A Housing Association will lend you the remaining 30-50% under a HomeBuy Loan. No part of the loan has to be paid until you choose to sell your property. When you're ready to move up the property ladder, your property will be put on the market at the current market value and when its sold you will repay the HomeBuy Loan amount.
HomeBuy is not intended for people who can afford to buy a property without assistance. Please note there may be additional purchasing options in the future that differ from HomeBuy.
Property is valued at £115,000, depending on your financial circumstances, you would be expected to obtain a mortgage on anything from 50-70% of the properties value - whereby 50% is £57,500 and 70% is £80,500.
The remaining 30-50% of the properties value is lent to you under a HomeBuy loan by a Housing Association. Therefore, this could be 30% = £34,500 and 50% = £57,500.
When you choose to sell the property, you are expected to repay the HomeBuy percentage loan. This means that if you borrowed 30% and your property is now valued at £120,000 on the open market, you will be expected to repay £36,000 and if you borrowed 50%, you will be expected to repay £60,000 - this equates to the percentage share and the cost of your property at the time of selling.