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MyChoiceHomeBuy
What is it?
MyChoiceHomeBuy is a Government backed low cost, homeownership programme. It allows you to receive an equity loan towards the cost of purchasing a home on the Open Market.
It is aimed at helping social tenants, key workers and others who cannot afford to buy a suitable home in the area where they live or work.
MyChoiceHomeBuy is a flexible equity loan scheme designed to help households earning between £20,000 to £60,000 per annum to buy their own home on the open market.
Who can apply for MyChoice HomeBuy?
Eligibility for MyChoiceHomeBuy is targeted at groups such as local residents and key workers. Most applicants are first time buyers, however, we can also help a number of people who have previously owned property but are now unable to buy without assistance, for example in the case of a relationship breakdown.
The Government have prioritised the following groups for assistance under MyChoiceHomeBuy:
- Social rented tenants & Housing association tenants
- Local residents prioritised on the Local Authority housing waiting list
- Public sector key workers
- Other priority groups recommended by the Regional Housing Board
How does it work?
You choose a suitable property (usually through an estate agent) on the open market.
You will need to obtain a mortgage through an independent financial advisor, bank or building society. When the property you choose has been approved confirmation will be given to the amount of help you will receive.
An equity loan will be granted between 15% and 50% of the property value, depending on your individual circumstances. There is a monthly charge or fee on the loan of 1.50% per annum. The loan is redeemed in full when the property is sold. You must speak to an independent financial advisor for guidance on mortgages, the equity loan and repayment criteria.
How much loan is available?
This will depend on your household income, family size and property values in the area where you live or work.
Do I have to make monthly repayments?
You must maintain your home and pay all bills including amenities, council tax and buildings insurance. You are responsible for mortgage repayments and the 1.50% charge on the equity loan.
Who qualifies as a key worker?
Key workers are defined by the Government. To clarify your eligibility, visit the Housing Corporation website www.housingcorp.gov.uk.
Can I redeem part of my equity loan?
You are entitled to redeem all or part of your equity loan any time after one year of owning you home. Your home will be valued by an independent surveyor who is registered with the Royal Institute of Chartered Surveyors (RICS). If you decide to proceed it will be at a price based on the current valuation. The monthly charge you pay will be reduced proportionately – to zero in the event that you redeem your loan completely.
Do I need to have any savings?
Your equity loan cannot be used as a deposit or towards your purchase costs. We estimate you will need around £4,500 to cover legal fees, mortgage fees, stamp duty and other costs associated with buying and moving.
When I sell my home, how much do I have to pay back?
The loan you receive through the MyChoiceHomeBuy scheme represents a percentage of the purchase value of your property. When you sell you will repay the same percentage based on the property value at time of sale.
If I need to move home, do I need to repay the loan?
Yes.
Your questions answered
Click on the link below to find out more information about MyChoiceHomeBuy.
How do I apply for MyChoiceHomeBuy?
You need to complete an application by clicking here.
