HomeBuy

Alongside Herefordshire Council's Low Cost Home Ownership initiatives, the Government have appointed HomeBuy agents across England.  A HomeBuy agent is a Registered Provider that provides a one-stop shop for people interested in HomeBuy schemes.  The agent for Herefordshire is Orbit HomeBuy.  Currently Orbit is running two schemes in Herefordshire:

• FirstBuy
• Shared Ownership (select 'Shared ownership' from the left hand menu for details)

FirstBuy (shared equity)

An equity loan product designed to help first time buyers into affordable home ownership.

• On certain purpose built new build properties, eligible applicants can receive an equity loan of up to 20% of the market value of the property to help fund the purchase.  The loan is co-funded by the developer and the Government.
• The applicant must be able to fund at least 80% of the property purchase with a mortgage and/or deposit.  The applicant must also pay the legal fees relating to the purchase. 
• The equity loan is free for the first 5 years.  In year 6 interest will be charged at 1.75% and will increase annually by RPI plus 1% from year 7.
• Voluntary part repayments to reduce the equity loan can be made at any time.
• The loan must be repaid in full if the property is sold.  The amount to be repaid will be a percentage of the sale price, equivalent to the percentage of the outstanding equity loan.

Eligibility

All applicants must 

• have a household income of less than £60,000 per year,
• be unable to afford a suitable property on the open market.

These types of properties are advertised by the HomeBuy agent and by the developer.  You will deal directly with the agent advertising the property.  When you bid for this type of property you will undergo a financial assessment to ensure affordability.  FirstBuy is available to March 2013.

For further information, please contact Orbit HomeBuy agents on 03458 50 20 50 or use the link below.