My Choice Homebuy

My Choice Homebuy

Low-interest loans
My Choice Homebuy is a government-funded programme to help first-time buyers who cannot afford to buy a suitable home. Aimed at council and housing association tenants, key workers and other first-time buyers, it provides a low interest equity loan of between 15% and 50% of the purchase price.

The scheme is designed to help people whose household income is between £20-60,000 per annum. You find a suitable property (usually through an estate agent) and a mortgage. Once we have approved the property, you pay a percentage of the price with your mortgage and any savings or deposit you have, and we give you an equity loan to cover the rest. There is a low monthly interest charge on the loan of 1.75% per anum, which increases annually in line with inflation.

You own the home, and our loan is secured by a second charge against the property. It is redeemed in full when the property is sold. There are certain criteria both on the kinds of property you can buy and on who is eligible. Most applicants are first-time buyers, although we can also help if your home is too small for your needs, or you have owned a property in the past but are now unable to buy without assistance, for example because of a relationship break-up.

Ownhome is a similar scheme, offered by Places for People with the Co-operative Bank, with loans of between 20-40% of the purchase price, with no interest to pay for the first five years.

For more information, or to apply, visit http://www.homebuy.co.uk/ or   www.ownhome.co.uk or call Places For People on 0845 607 0110.

The London-Wide Initiative  
The London Wide Initiative (LWI) is scheme to help key workers with a maximum household income of £60,000 buy a home by sharing the costs - and the benefits - of homeownership with the government.

Unlike shared ownership schemes, where the buyer buys part of a property and pays rent on the rest, LWI is a shared equity programme. Essentially you co-buy with the government. The government remains the owner of its part of the home, but you do not have to pay anything toward the government's stake. This can make it more affordable for key workers on lower incomes

LWI has brand new one, two and three bedroom homes on 15 sites across London. Key features of the scheme include:

  • buyers must be employed in a key worker occupation as defined by the government.  Priority is given to key workers living and working in the London boroughs where LWI operates, but key workers from a wider area may be considered
  • buyers must be able to afford around 50 per cent of the full purchase price of the home, funding their stake through a combination of savings and mortgage. Buyers are responsible for any mortgage repayments relating to their stake
  • the government will assist with around 50 per cent of the full purchase price. No rent or interest is paid on the government's stake
  • LWI homes are offered on a leasehold basis. Buyers own the property, but their financial stake in their home is limited to the percentage of the value that they buy
  • buyers can sell their LWI home on the open market regardless of the price they paid. The government shares in any increase in value of the property according to its level of investment
  • in some LWI schemes buyers can purchase more of the equity of the property over time. This is called staircasing.

Eligibility is assessed and approved by the Regional HomeBuy agents. For further information, contact your local HomeBuy agent at Housing Options, visit: www.firststepslondon.org or tel:0845 230 8099.