What is a Homebuy Agent?
A Government appointed HomeBuy Agent provides a "one-stop-shop" service for home ownership and rental opportunities that exist in these areas around England. By registering with an Agent, individuals are assessed to identify the schemes they are eligible for. HomeBuy Agents work with a number of organisations such as other housing associations, private developers, estate agents and local authorities to ensure customers are kept informed about all the opportunities available to them.
Agents also organise regular HomeBuy shows. At these events, independent financial advisers and solicitors provide affordability assessments and advice free of charge. The HomeBuy show is a great opportunity to find out more information and have queries answered face to face. Entry to these shows is free so visit the respective HomeBuy Agent websites for the latest dates.
There are a number of different scheme types that are offered under the HomeBuy initiative. Depending on your individual circumstances you may find that one or more of these are available to you.
For personnel living or working, or aspiring to live or work in London please visit the FIRST STEPS website (see link under "External Links")
HomeBuy Direct
A shared-equity scheme designed to help first time buyers have 100% ownership of their property. The purchaser will be the legal owner with full title to the home and can sell it on the open market without restriction. The buyer buys a new home, on a designated HomeBuy Direct development, with assistance from the Government and the house builder in the form of two equal equity loans. The equity Loans would be up to 30% of the purchase price leaving the applicant to raise 70% by way of a mortgage plus a deposit, if available. The equity loans are interest free for the first five years. After that, there is a fee of 1.75%, rising annually by the Retail Price Index (RPI) plus 1%.
FirstBuy
FirstBuy is an equity loan product which gives you the opportunity to buy a new home with the help of up to 20% of the full purchase price. Applicants will be required to fund at least 80% of the purchase price through a conventional mortgage. The FirstBuy equity loan will be interest free for the first five years with a charge payable from year six.
Shared Ownership
This scheme offers brand new high quality homes available on a ‘part-buy/part-rent’ basis (also known as NewBuild Homebuy). Under this initiative, eligible individuals are able to become home owners by buying a share of a newly built property (from as low as 25%) and pay a subsidised rent on the portion they don’t own. Individuals then have the opportunity to increase their share of the property as their financial situation allows by ‘staircasing’. HomeBuy Agents can provide you with details of the developments in your area that offer ‘part-buy/part-rent’ opportunities. From time to time ‘part-buy/part-rent’ properties will become available as a result of existing owners moving further up the property ladder. These are known as ‘Resale’ properties.
Intermediate Rent
This option offers new build properties at 80% (or less) of current market rents and is available through a number of Housing Associations. In most cases the initial period is for six months and time frames are reviewed regularly. Under some circumstances, at a later date, there is option to buy a share of the property through another HomeBuy scheme.
Rent to HomeBuy
Under this scheme, commonly referred to as “Try Before You Buy”, eligible individuals are able to rent a newly built home provided by a Housing Association at a rate that is normally 80% of the current market rate. Depending on the development the individual has the option to convert the rental agreement into shared ownership (part-buy/part-rent) after a period of 3 years of 5 years. The rental period is designed to provide an opportunity to save for a deposit to put towards buying a share in their home.
Social HomeBuy
This scheme allows some social housing or local authority tenants to buy their current home at a discount either outright or on a part-buy/part-rent basis. To do so, their landlord must have decided to take part in the scheme. This is likely to be of interest to tenants who do not qualify for the Right to Buy or Right to Acquire or who are not currently in a position to buy their home outright. Interested parties should contact their landlords to see if they are participating in this scheme.
Eligibility Considerations
Eligibility rules have been amended by the Homes and Communities Agency (HCA) for existing homeowners. As a result all current home owners who wish to be considered for HomeBuy options are now required to have a 'Priority Housing Need' approved by their current Local Authority BEFORE they register with the local HomeBuy Agent for the area they wish to live in. The priority housing need will be assessed in accordance with the Housing Act 1996. In addition, to be eligible for HomeBuy schemes, candidates must fit into one of the following criteria and must NOT have a household income in excess of £60,000 per annum. Once you have met the initial eligibility criteria, the Government has prioritised the following groups for assistance:
First time buyers
First time buyer groups who cannot otherwise afford to buy a home on the open market.
MoD Personnel
As defined by the Home and Communities Agency (HCA) including Regular Armed Forces Personnel.
Social tenants and those on the housing register
Tenants of councils and housing associations and those who are on the Local Authority Housing Register. MOD Personnel and Social tenants who wish to buy a property through HomeBuy are given top priority.
Those who have had a major change in circumstances
Current or previous home owners who are looking for a new property as a result of a major change in their personal circumstances e.g. divorce/separation, victim of domestic violence. Overcrowding due to a growing family etc. Subject to approval.
So if you meet these requirements what should you do now?
Register with the HomeBuy Agent covering the area you are interested in (details can be found by visiting the HomeBuy website - see link on the right hand side of the page).
Mortgage Rescue Scheme
The Mortgage Rescue Scheme has been designed to allow vulnerable home-owners, at risk of repossession, to remain in their homes. For information on how to apply for Mortgage Rescue please click on the External Links section, Further Details on HomeBuy(England). If you are having difficulty in paying your mortgage you should first speak to your mortgage lender.
Your local council will also be able to give you advice and assistance to help you stay in your home.