Open Market HomeBuy helps people who can’t afford to buy a property without assistance to buy a suitable home by offering them an equity loan of approximately 25% of the value of the property, and the other 75% of the value of the property is purchased with traditional mortgage.

The equity loans are funded by the government, through your HomeBuy Agent, and by the mortgage lender. At the moment there are four mortgage lenders jointly-funding this scheme; Nationwide Building Society, Yorkshire Building Society, Advantage (part of the Morgan Stanley Group) and Halifax.

Your payments for the first 5 years are lower as you make no payments on the equity loan. After this time, the mortgage lender will make an interest charge on their equity loans, (capped at 3% for the next 5 years) but there will never be an interest or payment charge on the equity loan provided by the government. In return, the mortgage lender and the government will benefit from a share in any interest in equity on your property when you sell the property or re-pay the equity loan.

You will need to be able to raise 75%* of the purchase price of the property via a mortgage with one of the joint-lenders funding this scheme, on conventional mortgage terms. (*The Advantage product offers flexible equity loan shares for applicants with large deposits)

The joint-lenders offer slightly different products and before you are made an offer, you will be referred to a panel of independent mortgage advisors. They will advise you which of the current lender’s products would suit you best – however, you do not have to arrange your mortgage through the advisor.

• Existing tenants of local councils and housing associations
• Those registered on local housing registers
• Key Public Sector employees
• Some other priority first time buyers’ e.g. local authority employed support workers, state funded teaching assistants & learning support assistants, NHS employed medical secretaries and medical receptionists - all working in Hertfordshire.
• Other First Time Buyers who cannot afford to purchase without assistance

Purchasers will need to raise 75% of the purchase price through a mortgage with one of the lenders jointly-funding the scheme. (The Advantage product offers flexible equity shares). The other 25% of the property value is raised through a 12.5% equity loan from the mortgage lender and a12.5% equity loan from the government via the HomeBuy Agent.

The government equity loan is a second charge against your property.

There will never be any interest charges on the government’s equity loan. If you die, your home will be part of your estate

Most homes may be considered but if in doubt, check with Lea Valley Homes

• Most homes may be considered but if in doubt, check with Lea Valley Homes
• Traditional construction
• You may purchase a property with one bedroom more than you need
• Leasehold homes with a minimum of 55 years left on the lease
• If the property you currently rent is being offered for sale, you may purchase it providing the survey verifies the valuation.
• Properties under construction and being marketed by the developer may be purchased if:
  • the sale price is fixed
  • exchange on contracts takes place within 6 months of ‘Invitation to Search’

Yes there are a number of properties that you would not be able to buy under OMBH

• Mobile homes of any sort e.g. houseboats, caravans etc
• Properties bought at auctions
• Properties that need more than £5,000 spent on defects to bring them up to standard
• Commercial properties
• Leasehold properties with less than 55 years left on the lease.