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.

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 to £30,000.

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.

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

FAQs

What is the scheme?

It is a scheme to help people living or working in the borough to purchase their first home, either an existing home or a new build property.

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?

1. You will need to have a local connection to Basingstoke & 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 will the council decide who gets the loan?

On the basis that applicants meet the criteria above, applications will be considered on a first come first served basis, which will be determined based on the application date.

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.

I applied for the scheme, what happens next?

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

The remaining applicants who met the qualification criteria will be placed onto a reserve list.

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

We will also remain in close contact with successful applicants to assist them in the purchase of their first property.