Homebuy schemes are designed to make housing more affordable. Shared ownership is the most popular type of homebuy scheme.
An introduction to homebuy from Share to buy ltd
'Homebuy' is the term used by the Government to describe its various different shared ownership and affordable housing schemes. In London the Homebuy schemes are referred to as 'First Steps' schemes but the products are essentially the same. The main homebuy schemes are as follows:
- Newbuild Homebuy: traditionally called shared ownership, new build homebuy is essentially part buy / part rent on new build homes (in fact, the term newbuild homebuy has been discontinued as of summer 2011 and this scheme is once again known primarily as shared ownership).
- Homebuy Direct: a shared equity scheme where both builders and the Government join forces to provide funding for a potentially sizable deposit on a new home (as of September 2011 a new variation on this scheme, also with an equity loan from the Government, will be available called 'FirstBuy')
- Rent to homebuy: enabling potential homebuyers to rent at a discounted rate before they purchase (as of summer 2011 known as Rent to buy)
- 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
Looking for a homebuy mortgage?
If you are looking for information on homebuy mortgages, Share to buy specialize in all types of shared ownership and homebuy mortgages and even have access to shared ownership mortgage deals that you may not find through most other channels. For more information on Share to buy's shared ownership mortgage service click here, or you may prefer to go straight to their shared ownership mortgage calculator which links to daily updated mortgage rates to give you a robust estimate of your borrowing potential and likely cost.
What is the difference between homebuy and shared ownership?
Essentially, homebuy is the Government's own invented term for what has traditionally been referred to as shared ownership or 'part rent part buy'. The main two homebuy schemes are shared ownership and shared equity: with shared ownership, you part rent and part buy a property with a share starting as low as 25%; with shared equity, schemes generally involve customers purchasing a new build home from a developer where they own 100% but where a substantial part of their deposit is an equity loan. Shared ownership (inc part buy part rent) is generally provided by housing associations and shared equity/equity loan schemes by national housebuilders.
Which homebuy scheme is the best for me?
This will depend on your circumstances and preferences. The best thing to do is to research the different options and then contact your homebuy agent to discuss those options further. The homebuy agent is a housing association which acts as the initial point of contact for a specific region. You can find your homebuy agent by contacting the Homes and Communities Agency.
Can I buy any property with a homebuy scheme?
Unfortunately, the funds made available by the Government for 'open market homebuy' schemes where you can generally buy any property on the open market have all been used up. However, whilst it is the case that the two main schemes – homebuy direct/FirstBuy and shared ownership (new build homebuy) – limit you to new homes, it is possible to purchase second hand shared ownership properties in a process known as a 'resale'. This is where you buy a share from an existing owner and therefore provides scope for owning shared ownership homes that are not brand new.
What about the legal side of homebuy/shared ownership?
The legalities of a homebuy purchase will be handled by your solicitor so it is important that you choose a shared ownership solicitor with experience of the various homebuy schemes. Share to buy has a panel of shared ownership solicitors who are on hand to assist you with your homebuy purchase.
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If you have any difficulties in making payments on your shared ownership mortgage, please contact your mortgage provider or housing association immediately.