Affordable Home Ownership

Orbit Help to Buy Midland Products

These are just some of the affordable home ownership products currently available for those who would like to get a foot on the property ladder but cannot afford a property which meets their needs on the open market.

Help to Buy - Equity Loan 

  • Help to Buy - Equity Loan is designed to help you buy a newly built home from a participating registered developer, whether you are a first time buyer or an existing homeowner. Unlike previous schemes, there is no upper income cap for buyers.
  • The Government will give you an equity loan of between 10% - 20% of the value of your property to help you buy. There is no interest to pay on this loan for the first five years.
  • Your loan must be paid back either when you sell your property or at the end of 25 years, whichever is sooner.

Help to Buy - Mortgage Guarantee (will be made available from 1st January 2014)

  • A Help to Buy Mortgage Guarantee lets you buy a newly built home or an existing property with a deposit of 5% of the purchase price. You borrow a 95% mortgage from a conventional mortgage lender who receives a government guarantee on a proportion of the mortgage (approx. 15%)
  • To qualify, your new home must be:

-       Priced £600k or less
-       Your main home
-       Owned fully by you (can't use for shared ownership or shared equity purchases)

Help to Buy - Shared Ownership

  • Help to Buy - Shared Ownership is an opportunity for those who want to get a foot on the property ladder but can't afford to buy a home on the open market. It allows you to buy a share in a brand new leasehold property on a part buy/part rent basis and pay a subsidised rent on the part that you do not own.
  • Most Registered Providers (Housing Associations) offer shares for sale of between 25% and 75% of the property depending on how much you can afford to purchase and charge rent on the remaining share. You will need to be able to raise a mortgage for the share you want to purchase unless you have sufficient money to enable you to do so.

Other Equity Loan Products

  • From time to time there are opportunities available on new developments. These may be offered by housing associations, local authorities or developers to eligible applicants; purchasers buy a defined percentage of the property and pay back the remaining equity on sale.

Discounted Sale or Fixed Equity Products

  • A cap is placed on the proportion of equity that the owner can purchase, for instance restricting the owner to 75% ownership. When you sell the property you sell at the discounted purchase price, for example 75% of the value of the property at the time of sale.

We strongly advise all applicants to get independent financial advice on what assistance may be available to them, and their ability to afford any of the above products. For more information and for properties available in your area, please contact Orbit Help to Buy Agency by clicking on the following link:- Tel: 03458-502050.