Own Home Loan scheme

This Home Loan scheme is aimed at people living or working within the borough, to assist them to take their first steps on the property ladder.

Our scheme is modelled on the Government’s previous Help to Buy: Equity Loan scheme, but allows successful applicants to purchase either an existing home or a new build property.

A total of £580,000 has been made available from the council’s unspent affordable housing contributions, which will allow for up to 20 households to borrow up 20% of the value of the property up to a maximum of £30,000. The maximum property purchase price is £250,000.

Applications for the scheme are open but there are limited spaces available. If you are interested in taking advantage of the scheme please email ownhomeloan@basingstoke.gov.uk with the following information:

• your name, date of birth, telephone number and current address
• confirmation that that you can afford a minimum 5% deposit for a property suitable for your needs
  

Qualifying applicants will be prioritised on a first come, first served basis which will be determined on the application date.

Successful applicants will be contacted and once we reach 20 applicants, the remaining applicants who meet the qualification criteria will be placed on a reserve list.

We are partnered with Parity Trust to deliver the scheme, and they will conduct independent financial assessments with the successful applicants to enable them to secure a mortgage.

We remain in close contact with you to assist you in the purchase of your first property.

For any further queries please email ownhomeloan@basingstoke.gov.uk or see the below FAQs.

FAQs

Who can borrow the money?

1. You will need to have a local connection to Basingstoke and Deane.
2. Have a household income under £80,000.
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 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 was decided in line with the Government’s previous Help to Buy scheme.

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.

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.