HomeBuy Direct – available developments and developer information
	Download the HomeBuy Direct Buyers Guide

With HomeBuy Direct, you can buy a newly built home on a designated HomeBuy Direct development with assistance from the Homes and Communities Agency and the house-builder, in the form of two equity loans.

You would take out an affordable mortgage (minimum 70% of the total purchase price) on which you make repayments in the normal way. The rest of the purchase price will be paid for with equity loans from the Agency and the house-builder (maximum 30% of the total purchase price).

For the first five years of HomeBuy Direct home ownership you will pay nothing on the amount that the Agency and house-builder contributed to your purchase.

After five years, you will pay a fee to the Agency (through the National HomeBuy Agent) of 1.75% per annum on the outstanding amount of the equity loans from the Agency and the house-builder. This fee will increase each year by the RPI plus 1%.

When you sell your HomeBuy Direct home, you will repay the HomeBuy Direct loans from a share of the sale proceeds. So, if the Agency and the house-builder initially assisted the purchase with a 30% contribution, the repayment will be 30% of the total value when it is sold.

After 12 months of ownership you can also choose to make part repayments (‘staircasing’) of the HomeBuy Direct loans at the current market value. The minimum additional repayment is 10% of the total market value.

The Agency’s and house-builder’s entitlement to a share of the future sale proceeds is secured through second charges on your home. This is done in the same way that your mortgage lender will secure its lending through a first charge on your home.

Although, if you buy through HomeBuy Direct, you will have a mortgage for less than the full purchase price of the property, you will be the legal owner with 100% title to your home.

Further details on HomeBuy Direct can be found at:

http://www.homesandcommunities.co.uk/homebuy_direct