Own Home Loan scheme

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Basingstoke and Deane Own Home Loan scheme offers residents up to £30,000 in the form of an equity loan to reach the deposit required for a mortgage or to bridge the gap between their maximum mortgage offer and property purchase value.

Frequently asked questions

What is the scheme?

It is a scheme to help younger people living or working in the borough to help them get a home. It is modelled on the Government’s help to buy scheme but is focussed on existing homes.

How much can be borrowed?

Up to £30,000. The council is making available £580,000 so borrowing will be available to up to 20 households if the full amount is loaned.

Who can borrow the money?

You will need to meet the following criteria

  1. You will need to be living or working in Basingstoke & Deane and registered on the council’s housing register.
  2. Have a household income under £50,000.
  3. Must be the first home that you have bought and your only home.
  4. You will need to be able to provide a 5% deposit.
  5. You will need to pass an external financial assessment.
How will the council decide who gets the loan?

On the basis that applicants meet the criteria above it will be awarded to those with the earliest dates on the housing register, with initial priority going to those applicants under the age of 35.

How much will the borrowing cost?

There will be no charge for the first five years. After five years the loan would have an interest payment of 1.75% per annum and every year after that the interest payment would increase by the difference year to year with the retail price index. This is in line with the government’s scheme for new build (Help to Buy).

When will it need to be paid back?

When the house is sold or before that as decided by the borrower.

What safeguards are in place for me?

The external financial assessment will ensure you can afford the mortgage and the additional loan.

What safeguards are in place for the council?

The council will secure its lending as a second charge on the property. When the property is sold the council will get its money back with an uplift depending on the increased value of the home. The applicants will be vetted by an external financial assessor working with the council.

How is the council funding this?

The council is using money it has received to provide affordable housing from developments where affordable homes could not be built on site.

Do other councils run a similar scheme?

West Berkshire Council has run a similar scheme for the last 10 years and has helped us to set up our scheme.

What do I need to do next?

We are in the process of finalising the details of the scheme. If you are interested in applying please ensure you are registered on the council’s housing register and for more details on low cost home ownership products please sign up to the council’s Yourhome dotmailer at www.basingstoke.gov.uk/buyaffordablehomes.

When can I apply?

The scheme will be launched on 24 January 2020 and the application process will run until 20 March 2020.

Did you know you can also sign up to receive emails from the council giving help and advice on getting on the housing ladder and opportunities to buy affordable homes in the borough? Register at www.basingstoke.gov.uk/yourhome.

Contact us

  • Contact us online
  • 01256 844844
  • Civic Offices
    London Road
    Basingstoke
    RG21 4AH
  • Opening hours
    Monday to Thursday
    8.30am to 5pm
    Fridays
    8.30am to 4.30pm
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