Frequently Asked Questions
What is Homebuy?
Homebuy is the name given to the government-funded schemes offered by MyPlace. At the moment, these schemes fall into the following categories:
New Build Homebuy & Resales - formally known as “shared ownership” or “part rent/part buy”. The scheme allows you to buy from a Housing Association or private developer, a share in a property which has been especially developed for this scheme using a mortgage and/or savings. The remainder share is then rented from the Housing Association or Developer. The properties are usually offered on a 25%-75% basis. If you wish, you can buy additional shares in your home at any time until you own 100%.
Open Market Homebuy -Two new products, which are backed by the Government, have just been launched to help eligible applicants buy their own home.
These two new products are part of the Government's Open Market HomeBuy initiative and offer key workers and other first time buyers access to an equity loan of up to 50% of the property's value.
Ownhome
Ownhome is provided through a partnership between Places for People and The Co-operative Bank. Ownhome gives people the chance to take up to 40% of the value of the property in an equity loan from Places for People.
You will pay nothing for the first five years on the equity loan. After these five years, a low rate would be paid on the sum – starting at a fixed rate of just 1.75% interest per year for the next five years, and then increasing to 3.75% interest per year from year eleven.
The remainder will be funded through a conventional mortgage with The Co-operative Bank. There will be no premium or extra charges on the mortgage and customers can choose from a range of competitive deals including fixed rate and tracker options.
You can apply for Ownhome through MyPlace. You may also wish to obtain further information by contacting Ownhome direct on 0845 607 0110.
My Choice HomeBuy
My Choice HomeBuy enables applicants to apply for a mortgage with any lender they choose. The scheme will provide applicants with up to 50% of the value of the property as an equity loan. The remainder will be funded through a conventional mortgage with a Financial Services Authority regulated lender.
The purchasers will pay a low rate of 1.75% per annum on the equity loan funded by The Swaythling Housing Society. The rate paid on the standard mortgage will depend on the deal selected through the mortgage providers.
You can apply for My Choice HomeBuy through MyPlace. Please click here to read the My Choice HomeBuy leaflet.
With both products no deposit is required, but is allowed. When the property is sold, the equity loan provider will be entitled to a share of any increase in the value of the property.
First Time Buyer Initiative (FTBI) - MyPlace is delighted to be working closely with English Partnerships (a national regeneration agency) to launch the First Time Buyers' Initiative in Dorset. This initiative is a shared equity scheme and complements the Government's HomeBuy schemes. Applicants purchase a minimum of 50% of the full purchase price of a new property built on a designated FTBI development. The Government will assist with the remaining percentage up to a maximum of 50%. Purchasers pay fees to the Government on its contribution after three years of ownership. Buyers must repay the assistance when they sell the property.
Intermediate Rent -this is a relatively new scheme and not many homes are being developed on this basis. The scheme enables you to rent a purpose built property at below the private sector price but above what you would normally pay if you were a council or housing association tenant. Properties offered on this basis are only available to key workers.
Who is Homebuy for?
Homebuy is designed to help you buy a home suitable for your household's needs, which you could not afford on the open market. Demand for some of our schemes is high and not everyone will be eligible. In some areas, if the local authority funds the scheme, the criteria may be tailored to meet the housing need in that area. For example, priority may be awarded to people with a local connection - either family or work; we ask you to list any such connections on the application form.
I am currently living in private rented accommodation. The Homebuy option is operating in my local authority area. Can I be considered for this?
Yes, Homebuy is available to you, if you are looking to buy your first home, regardless of whether you rent privately. There are some requirements you will have to meet to be eligible for the scheme and these are set out in the guidance notes which accompany the application form.
I've submitted my application, when can I start looking for a property?
We'll need to consider your application form first and advise if you have been accepted onto the register. You will receive clear instructions, in writing from us telling you that you have been accepted and can start looking. With Open Market Homebuy, you should not make an offer on a property or incur any costs until we advise you to do so. With New Build Homebuy, the organisation building the new home will advise you when & how to proceed.
I can afford the monthly costs involved in home ownership but I haven't got £2,500 in savings. Am I still able to apply?
Buying a home is expensive. £2,500 is considered the minimum you will need to cover costs such as legal fees, mortgage valuation, survey and stamp duty. Unfortunately we cannot accept your application if you do not have access to the funds you will need to cover these costs.
My partner and I owned our own home, but we're now separated. Can I still apply, even though I'm not technically a first time buyer?
Yes. If your relationship breakdown means that your housing needs have changed, we will deal with your application as a first time buyer. Make sure you include all relevant details, such as the proceeds from your house sale etc. on the application form.
Other circumstances such as overcrowding or a job location move are also considered in this way.
How do I know if I'm a ‘Key Worker'?
Generally you must be a public sector worker carrying out an essential public service. Exactly who falls into this category may vary from place to place. We should be able to tell you whether or not you fall into this category if you either e-mail or telephone us. Otherwise your employer may be able to advise you. If you work in any of the following sectors then you will probably be considered as a key worker in the South West. NHS; Police; Education: Probation service; Prison service; Local Authority; Fire and Rescue services.
How do I know the amount of mortgage I will be able to afford?
Any bank, building society, or independent financial advisor (IFA), will be able to provide help with this. They will also tell you the costs that are likely to be involved. When your application has been processed we will advise you of the range of house prices we consider would be affordable for you.
What if I need help completing the application form?
You can email us at help@search4myplace.co.uk or phone us on 0800 707 6 707 between 9am and 5pm, Monday to Friday.
Although I live and work in the UK, I am not a UK National. Can I still apply?
You can apply if you are from one of the member states of the EU and are currently living and working in the UK. You can also apply if you have "permanent leave to remain in the UK", or settled status. You can tell if you have this status by looking on your passport, and it will have a stamp saying either "indefinite leave to enter" or "indefinite leave to remain."
You have written to me and said that I cannot afford home ownership. I am about to lose my home, I shall be homeless. What can I do?
We will have considered your application carefully taking account of your longer term ability to afford and maintain the costs of home ownership. You should contact the housing department at your local council to see whether they can help. You may also wish to seek advice from your local Citizens Advice Bureau.
If you do not accept my application, can I appeal?
Yes. We will reconsider all applications, providing you contact us within one month of receiving your letter. This is especially the case if any of the circumstances within your application have changed.
Disclaimer
All types of home ownership carry risks if you do not keep up your monthly payments.