What is an equity loan?
This will only apply to applicants who wish to, or who have purchased a property through the Open Market HomeBuy scheme.
There are two products available for the open market homebuy scheme.
Ownhome: This scheme is provided through a partnership between Places for People and The Co-operative Bank. Ownhome gives people the chance to take up to 40% of the value of a property on the Open Market through an equity loan from Places for People. The purchasers will pay nothing at all for the first five years on the equity loan. After the first five years a low rate will be paid on the sum borrowed; starting at a fixed rate of just 1.75% interest per year for the next five years and then increasing to 3.75% interest per year from year eleven. The remainder will be funded through a conventional mortgage with the Co-operative Bank. There will be no extra premiums or charges on the mortgage. You can apply for Ownhome through Home2own, or directly to Ownhome on 0845 607 0110.
With this product no deposit is required, but is allowed. When the property is sold the equity loan provider will be entitled to a share of any increase in the value of the property.
This product is available to key public sector workers, social tenants or those on a waiting list, and other priority first time buyers.
MyChoiceHomebuy: This scheme enables purchasers to apply for a mortgage with any lender they choose. The scheme will provide them with up to 50% of the value of a property as an equity loan. The remainder will be funded through a conventional mortgage with any Financial Services Authority regulated lender. The purchasers will pay a low rate of 1.5% per annum on the equity loan funded by one of eight housing associations who are acting as equity loan providers. You can apply for MyChoiceHomebuy through Home2own. If you wish to contact MyChoiceHomebuy please visit www.swayhs.org.uk.
MyChoiceHomebuy has recently been allocated some additional funding to help First Time Buyers buy a brand new home from a house builder. Why not try www.smartnewhomes.com to look for something you might like.
Please note funding for properties on the open market through MyChoiceHomebuy and Ownhome have been fully allocated. Please check our website regularly for updates on the funding for these products.
