Option 1
Open
Market HomeBuy government loan only OMHB(glo)
The government only equity loan through Open Market
HomeBuy offers you the opportunity to purchase a
property on the open market. This product offers
an approximate equity loan of 17.5% of the purchase
price, which can be used in conjunction with a conventional
mortgage or mortgage and deposit from any qualified
lender regulated by the Financial Services Authority.
The approximate 17.5% equity loan is up to approximately
£50,000, and the equity loan offered will
be subject to individuals affordability. Purchasers
must maximise their mortgage and will be asked
to contact one of the Independent Mortgage Advisors
on the Lea Valley Homes panel to assess affordability.
Charges/Interest - There is
no ongoing charge or interest on the loan, and
you will share in any uplift in property value
with the Government when you pay the loan back.
Deposits - The loan can be used
in conjunction with any other deposit you may
have. There are no restrictions on the use of
deposits.
Paying back the loan - The loan
must be repaid when the property is sold, but
may also be paid back earlier, as and when you
can afford to do so. The amount which is repaid
is calculated as 17.5% of the property’s
market value at the time of repayment (or less
if you take out a smaller equity loan). If you
have been helped because you are a key worker
then you have 2 years to repay the loan or sell
if you cease to be a qualifying key worker in
a qualifying ‘Key Worker Living’ zone.
Please check out the questions & answers
for more information on this scheme. |
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Option 2
Open
Market HomeBuy – 32.5% government and Yorkshire
Building Society equity loan
This Open Market HomeBuy option offers you the opportunity
to purchase a home on the open market. You will
need to be able to raise a mortgage of 67.5% through
the Yorkshire Building Society. The remaining 32.5%
of the property is covered by two equity loans,
15% from the Yorkshire Building Society and up to
17.5% from the government, if you have a deposit
to put down this will reduce the government equity
loan. You will need to undertake an interview
with an independent mortgage adviser before an
offer can be made through this scheme. No
payments are due on the lender equity loan for
five years, there are no charges or interest payable
on the government equity loan.
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Option 3
Open Market
HomeBuy – 25% government and lender equity
loan
Open Market HomeBuy offers you the chance to purchase
a property on the open market. You will need to
be able to raise a mortgage to cover 75% of the
purchase price. The remaining 25% is covered by
two equity loans, the first 12.5% equity loan
is provided from the same lender with whom your
have arranged your mortgage and the second 12.5%
equity loan is from the government, if you have
a deposit to put down this will reduce the governments
equity loan.
There are currently two mortgage providers lending
in conjunction with this scheme. You will need
to undertake an interview with an independent
mortgage adviser before an offer can be made through
this scheme. No payments are due on
the lender equity loan for five years, there are
no charges or interest payable on the government
equity loan.
Please read the Open Market HomeBuy leaflets for
full details on the 25% government and lender
equity loan scheme. |
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| For those purchasing with a Key Worker priority,
provided you remain as a Key Worker in London, the
South East or the Eastern regions (the exceptions
to this are Herts Constabulary and Herts Fire &
Rescue Service whose Key Workers have to remain
Key Workers in Herts to qualify). If you cease to
be a qualifying Key Worker or specified public sector
worker ‘clawback’ (i.e. re-paying the
equity loan) will apply except in specific circumstances.
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| Points to remember for
both schemes |
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| • Key workers, and applicants who free up
council or housing association property will receive
the highest
priority. |
| • If you were given priority for an Open
Market HomeBuy equity loan because you are a Key
Worker or a Hertfordshire public sector employee,
and you sell the property you will have to pay back
the loan from the proceeds of the property sale.
If however, you cease to be a qualifying Key Worker
but want to remain in your property, you will have
two years to pay back the equity loan. |
| • You must not have a gross annual household
income of more than £60,000. |
| • You may pay the equity loan back at any
time. |
| • If you are a Key Worker who wants to change
their Key Worker employer to another Key Worker
employer, you must inform the HomeBuy agent in writing
and await confirmation on whether claw-back will
be enforced |
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