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Homebuy options
An introduction to homebuy from Share to buy ltd
'Homebuy' is the term used by the Government to describe its various different shared ownership, shared equity and affordable housing schemes (including FirstBuy and part-rent part-buy). The main homebuy schemes are as follows, with further details below:
- Shared ownership: previously referred to as new build homebuy, this is essentially part buy / part rent on new build homes but it also possible to purchase a second hand part buy home from an existing owner in a process known as a 'resale'.
- FirstBuy: a shared equity scheme (previously a slightly different product called Homebuy Direct) where both builders and the Government join forces to provide funding for a potentially sizable deposit on a new home. The deposit is in the form of an equity loan which enables customers to put down a deposit of just 5% and access potentially competitive 75% mortgage rates.
- Rent to homebuy: enabling potential homebuyers to rent at a discounted rate before they purchase
- Social homebuy: enables social tenants to buy a share in their existing home on a shared ownership basis, and with the benefit of a discount
New build homebuy
New Build Until recently, the Newbuild HomeBuy scheme was the Government's favoured term for traditional 'part buy / part rent' shared ownership. This is where you purchase a share in a new build home from as little as 25% and pay rent on the remainder at an affordable rate. Read about how part buy part rent works. Note that new build homebuy London is now called First Steps shared ownership. This has historically been the main homebuy Government scheme because it is the most established, and the presence of second hand shared ownership ‘resales’ means that there will always be availability of these particular homebuy properties.
FirstBuy (Homebuy direct)
FirstBuy is a shared equity scheme rather than shared ownership scheme and follows on from a similar product known as HomeBuy Direct. With shared equity schemes, instead of buying a share in a property (as with shared ownership), you buy the whole thing but with a deposit provided in the form an equity loan. Home Buy Direct and First Buy are both for purchasing new build properties and generally these are provided by national housebuilders, though some housing associations also have their own FirstBuy schemes. In this case, FirstBuy and HomeBuy Direct participants are given help to purchase a new build home from certain recognised builders. The purchaser takes out a mortgage to cover at least 70% of the purchase price (HomeBuy Direct) or 75% in the case of FirstBuy. With FirstBuy, the Government and housebuilder jointly top up the customer's own deposit of just 5% with an equity loan for a further 20% to give total equity of 25% and access to potentially competitive 75% mortgage rates. Due to the shares being larger on Firstbuy shared equity rather than on shared ownership, this is more likely to be a product for purchasing homebuy houses rather than apartments.
Rent-to-homebuy
Rent to HomeBuy enables potential shared ownership home buyers to pay reduced rent on a new build home. The idea is that these tenants can then save their discount towards a deposit for a shared ownership property purchase. The main point to bear in mind is that, since the credit crunch, minimum deposits have gone up across the board but particularly for mortgages on new build properties, and therefore this scheme enables people who might otherwise have trouble saving a deposit for an affordable mortgage to take part in Rent to HomeBuy as a scheme that will eventually lead to full participation in shared ownership of a home. Again, it is a new build property and the eventual purchase would take place under the new build homebuy scheme, i.e. part buy / part rent shared ownership.
Share to Buy: homebuy properties and mortgages
Share to Buy is committed to making affordable housing truly accessible online. At sharetobuy.com you can search for rent to homebuy properties, as well as properties available for sale via the shared ownership or Firstbuy schemes. We also have considerable experience of arranging homebuy mortgages, and are able to arrange a homebuy mortgage for you on any of the above schemes.
Shared Ownership Case Studies
Latest News
Shared ownership properties for part buy part rent
14th February 2012
If you are looking for affordable housing to buy, we may have the answer. At sharetobuy.com you can search for shared ownership properties available to buy through the part buy part rent scheme. These are properties generally sold by housing associations where you buy a share starting at 25% and pay an affordable rent on the remainder. Start searching now.
100% shared ownership mortgages and great 90% open market deals
20th January 2012
We now have access to 100% shared ownership mortgages. Customers can access zero deposit mortgages for part buy part rent but they must have no adverse credit history. More details here. We have also cut our open market 90% exclusive discount rate with no fees or early repayment charges. Read about our 10% deposit option for young professionals and first time buyers.
Tools
- Search: search for shared ownership properties; search for shared ownership solicitors.
- Calculators: shared ownership mortgage calculator; staircasing calculator; open market calculator.
- Apply: shared ownership mortgages; agreement in principle
For information on homebuy London, including new build homebuy London and Homebuy Direct London, please contact First Steps London. First Steps is the ‘homebuy agent’ for London. Homebuy agents are regionally appointed contact points for affordable housing enquiries (e.g. Homebuy Kent, Homebuy Surrey etc) and they are the point of registration for government homebuy schemes. The Homebuy scheme is only available in England. In London it is called First Steps. There is no Homebuy Wales – alternative schemes operate in Wales, Scotland and Northern Ireland (there is no ‘homebuy UK’ scheme as such).
A note on homebuy direct
The homebuy direct scheme is now called ‘Firstbuy’. You may find some homebuy direct homes still around but generally homebuy direct houses have all been sold or transferred to the Firstbuy programme, which is a similar shared equity scheme. If you are looking for a homebuy direct mortgage, this is effectively a shared equity mortgage, and again, would probably now be on the Firstbuy scheme and we can arrange those at Share to buy. There is also no further funding for open market homebuy. Search share to buy for homebuy shared ownership properties.
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