HomeBuy Direct
HomeBuy Direct is a new product from the Homes and Communities Agency, working in partnership with Ask Life.
The HomeBuy Direct initiative aims to make more new affordable homes available to eligible buyers priced out of the housing market. It is part of the Government’s low cost home ownership initiative, and is available in England through local HomeBuy Agents and participating house builders and housing associations.
Overview: the ‘stepping-stone’ into home ownership
With HomeBuy Direct, the buyer purchases a new home on a HomeBuy Direct development with assistance from the Homes and Communities Agency (HCA) and the house builder (Ask Life) in the form of two equity share loans. You must take out a first mortgage (with a qualifying institution). The mortgage, together with any cash contribution from you, must be a minimum of 70% of the full purchase price.
The HCA and Ask Life will provide equal equity share loans to make up the cost of your home, up to 30% of the full purchase price. These equity loans are repaid when you sell your home, at which point you must repay the same percentage of the proceeds of the sale to the agency and Ask Life as the initial equity loans (i.e. if you received equity loans for 30% of the purchase price of your home, you must repay 30% of the proceeds of the sale).The equity loans are interest free for 5 years, after year five, you will pay a fee on the equity loan of 1.75%, rising annually by the retail price index (RPI) plus 1%.
If you purchase through HomeBuy Direct you still have 100% title of your home and you can sell it on open market without restriction. Local HomeBuy Agents (Plumlife) will assess and approve your eligibility for HomeBuy Direct and you can apply on line. You must be confirmed as eligible by Plumlife before you enter into the buying process.
What to do next
You can register online at
www.plumlife.co.uk
and confirm your interest with Ask by calling 0870 242 4499.
You can download a pdf of further information
here.You may also find the HomeBuyer Direct Buyers Guide helpful; you can download this
here..