HomeBuy Direct

What is HomeBuy Direct?

HomeBuy Direct is a new shared equity scheme offered under the Government funded HomeBuy initiative, designed to help First Time Buyers and others into affordable home ownership. HomeBuy Direct will also help participating house builders by enabling more aspiring home owners to purchase their brand new properties.

HomeBuy Direct is only offered on specific new build schemes with home owners being offered an equity loan of up to a maximum of 30% of the purchase price of the property – the equity loan will be funded half by the developer and half by the Government, via the HomeBuy Agent.

What sort of property can I buy with HomeBuy Direct?

The types of property available under HomeBuy Direct at Priory Mill are 1 and 2 bed apartments and 3 and 4 bedroom houses.

Who can apply for HomeBuy Direct?

Applicants from the following may apply providing their gross household income does not exceed £60,000 per annum. The minimum household income will vary depending on individual circumstances but must be sufficient to sustain home ownership in the long term.

Current Social Housing Tenants
Public Sector key workers
First Time Buyers who cannot afford to purchase a suitable property without assistance, in the area where they live ort work
Some current / previous home owners who cannot afford a suitable home without assistance e.g. those going through relationship splits or families overcrowded in their current home and unable to afford a more suitable property.

How Does It Work?

You may be offered an equity loan up to 30% 0f the purchase price of the property you have chosen. You must contribute the remaining 70% through a mortgage and any deposit you may have. (Mortgage providers must be regulated by the Financial Services Authority)

How much will the Equity Loan cost me?

There is no fee for the equity loan for the first five years, and a charge of 1.75% will be levied from year 6 onwards.

Can I buy the rest of the equity in the property the future?

You may purchase the outstanding equity in one payment (i.e. you will own 100%) or you may redeem the equity loan in installments – the additional equity payments will be at market rates.

Will I be able to sell my property if I want to?

You will be able to sell your property on the open market and any outstanding equity loan will be repaid out of the sale proceeds. If the value of your property has risen since your purchase, you, the developer and the Government will have a share in the increase. If the value of the property has gone down, the developer and the Government will only share any sale proceeds towards the equity loan once the mortgage has been repaid.

REMEMBER! YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE, RENT OR ANY OTHER DEBT SECURED ON IT

PLEASE NOTE: PROPERTY VALUES MAY GO DOWN AS WELL AS UP.