Changes to Own Home Loan scheme to offer more residents the chance to own their home
In January 2020, the council launched its Own Home Loan scheme, enabling those on the housing register to make that next step and buy their own home.
Using £580,000 of council money allocated to provide affordable housing, the loan scheme aims to support people living or working in the borough, with loans of up to £30,000 to reach the deposit required for a mortgage or to bridge the gap between their maximum mortgage offer and property purchase value.
Following the launch of the scheme, four first-time buyers have successfully purchased their own home with further households currently in the market looking to make offers on their first property.
However, to allow more first-time buyers to take advantage of the scheme, councillors agreed to change the eligibility criteria in line with the recently approved local First Homes eligibility criteria at a meeting of Cabinet on Tuesday 8 March.
To qualify for support through the Own Home Loan scheme following the changes, residents must:
• Have a local connection to the borough such as living in the borough for the last 12 months or three out of the previous five years, have been permanently employed in the borough for the last six months, have a close family link within the borough with a requirement to move to the area to provide care and/or support or be a key worker including those who provide an essential service to the borough.
• Be a first-time buyer and have a mortgage to fund at least 50% of the discounted purchase price.
• Must have a household income of under £80,000 per year.
Cabinet Member for Homes and Economy Cllr Tristan Robinson said: “Home ownership is a dream and an aspiration for many young people across our borough who want to stay in the area where they grew up.
“I am pleased that our innovative Own Home Loan scheme has already helped a number of first-time buyers take that first step onto the housing ladder. We want to ensure that our residents have the best possible opportunities to buy their own home in the borough and we hope the changes to the scheme’s eligibility criteria will give more people the chance to get turn this dream into a reality.”
For more information on Basingstoke and Deane Own Home Loan visit www.basingstoke.gov.uk/own-home-loan