HomeBuy Direct
HomeBuy Direct will give eligible first time buyers the chance to buy a new build property. 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 the first five years. The equity loan will be free of charge to the purchaser for the first five years. At the start of year five a low equity charge levied of 1.75% rising at RPI + 1% p.a. From year ten onwards, the Bank of England Base Rate will be charged, increasing by RPI plus 0.5 per cent each year.
Buyers can start to staircase out of the equity loan in full or in part, 12 months after the date of initial purchase. Both equity loans must be redeemed or partially redeemed simultaneously and in equal proportions. The minimum amount for each equity loan redemption is 10%.
If the purchaser wishes to sell the property at anytime they will be able to on the Open Market. When the property has sold the purchaser will be required to repay the equity loan by way of a share of the sale proceeds. The repayment will be shared equally between the Government and the developer.
This scheme is available to social housing tenants, keyworkers and first time buyers.
This scheme will offer brand new homes on selected developments. We will keep our website updated with progress on this scheme, please check the 'property search' section of the website to view any properties that become available under this scheme.
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