Own Home Loan scheme
Basingstoke and Deane Own 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.
The scheme is modelled on the Government’s existing Help to Buy: Equity Loan scheme, but the Own Home Loan scheme allows successful applicants to purchase existing homes, not simply new build properties.
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 to £30,000.
The initial application period for the scheme opened on 24 January and lasted for 8 weeks. There was a healthy demand for the scheme.
However, applications are now re-open for the Own Home Loan scheme as spaces are still available.
If you are a first time buyer interested in taking advantage of the scheme, please email firstname.lastname@example.org by Friday 30 October 2020, with the following details:
- Your name, date of birth, telephone number and current address
- You housing register (Homebid) reference number.
- Confirmation that you are able to afford a minimum 5% deposit for a property suitable for your needs.
There is limited availability so those applicants with the earliest housing register application date will be referred to our partner organisation for the scheme for a financial assessment to be undertaken, with initial priority going to those applicants under 35 years of age.
For any further queries please email email@example.com or see the below FAQs.
- What is the scheme?
It is a scheme to help people living or working in the borough to purchase their first home. It is modelled on the Government’s Help to Buy: Equity Loan scheme but is focussed on existing homes.
- How much can be borrowed?
Up to 20% of the value of the property can be borrowed, up to a maximum of £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.
The maximum property purchase price is £250,000.
- Who can borrow the money?
- You will need to be living or working in Basingstoke & Deane and registered on the council’s housing register
- Have a household income under £50,000.
- Must be the first home that you have bought and your only home.
- You will need to be able to provide a 5% deposit.
- 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 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.