Case Study - Somerset in the summer
Nikki & Devin Ashwood (pictured left) are enjoying life in their new home thanks to Open Market HomeBuy and the New Futures HomeBuy Zone Agency.
The couple have bought a terraced house in Bruton, Somerset during the summer and are now looking forward to the birth of their first baby.
Like many people, they had struggled to get onto the property ladder, but they found out about Open Market HomeBuy, a home ownership scheme for people who can’t afford to buy a home outright.
Open Market HomeBuy applicants buy a home using a mortgage for around 75% of the property value from an approved lender and two equity loans for the remaining 25% - one from the mortgage lender and the other from a HomeBuy agent – in the Ashford’s case it was through New Futures.
No interest is charged at any time on the equity loan from New Futures and interest is only payable on the second equity loan after the first five years. The amount that has to be repaid to the lenders is linked to the value of the home at the time it is sold. In June a second option was introduced whereby applicants need to raise a mortgage of 82.5% and obtain a 17.5% equity loan that is interest free.
Priority is given to housing association and Council tenants, people on local authority or housing association waiting lists, key public sector workers (such as nurses, teachers and the police) and first time buyers.
Gloucester Housing Association’s Julie Stafford who manages the HomeBuy Zone Agency on behalf of New Futures reported “Although the Open Market HomeBuy programme has been slow to take up nationally it has been gaining momentum in the south west and we recently received a further allocation of 10 units to help meet the demand.
New Futures has been receiving high quality applications for Open Market HomeBuy and we are pleased that we are on target to exceed our allocation of 127 homes by the year end. All 127 homes are now reserved with over 50% as completed sales.”
Devin Ashwood, 34, said: “We’ve been able to buy a home we couldn’t otherwise afford, so we’re very happy. We found the staff helpful and supportive too.”
