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HomeBuy Direct

The HomeBuy Direct scheme will make available more than £400 million to help more than 18,000 first time buyers into affordable homeownership over the next two years.

HomeBuy Direct will give eligible first time buyers keen to own a place of their own the chance to buy some newly built properties.  Buyers will be offered an equity loan of up to 30% of the value, co-funded by the government and the developer, free of charge for five years. 

Who can apply?

• Social Tenants
• Keyworkers
• First Time Buyers

  As with other HomeBuy schemes, any first-time buyers whose household income is under £60,000 will be able to apply. 

What homes are available?

This scheme will offer a brand new home on selected developments. As new homes become available under this scheme we will update our property pages.

Who does this scheme help?

Not only will this help first time buyers, but it will also support the industry by identifying buyers for their new homes. This will help the house building industry weather difficult conditions, so that, when the market recovers, they are ready to expand and get back on with building the new homes the country needs for the long term. 

Are there any charges?

The equity loan will be free of interest charges for the first five years. From year six, a 1.75% charge per annum will be levied rising at Retail Price Index + 1%. If you are unsure of how this might work please contact us.

Can I redeem my loan?

Purchasers can redeem the equity loan in installments, purchasing up to 100 per cent equity after their initial purchase by buying additional equity at the market rate.

What if I want to sell?

Buyers will be able to sell their HomeBuy Direct home on the open market. When they do so, they will repay the equity loan by way of a share of the sale proceeds. This repayment will be shared equally between Government and the developer.

What happens if property prices rise or fall?

If the value of the property has increased by the point of sale, the buyer, the developer and Government will all share in this increase. If the value of the property has gone down, Government and the developer will only share the sale proceeds that are left over once the mortgage has been repaid. This provides the buyer with greater protection against negative equity.

How do I apply?

Simply complete an application by clicking here.

What do I do if I am already registered with New Futures?

We will be making further information available to those already registered with us and you should check the website regularly for further updates.

However, if you wish to express your interest you can contact us at hbd@homebuysouthwest.com including the following information: Name(s), address & email.