MyChoiceHomeBuy
We are pleased to announce the launch of the MyChoiceHomeBuy equity share scheme from 10 June 2008. This scheme has been introduced to replace the Open Market Homebuy scheme that the government withdrew on 1 April 2008.
The Scheme
- A Housing Association will provide an equity share loan between 15% and 50% of the purchase price
- A deposit is not required but an applicant can supply one if they wish. This will not affect the funds available from the Housing Association
- The Housing Association will charge an annual fee. In the first year this is 1.75% of the equity share loan. A portion (one twelfth) of this fee is collected monthly. The fee rises each year
Lending Terms
- These applications are processed as equity share cases and must be submitted to your usual Service Centre on a paper application form together with the equity share questionnaire
- With respect to LTV, it is assessed at the purchase price/value. For example, if the price/value is £100,000; £15,000 from the Housing Association and £85,000 loan from Nationwide with no deposit from applicant the LTV is 85%. View further details of our lending criteria
- The monthly portion of the annual fee payable to the Housing Association must be included in the affordability calculation in the Shared Ownership rent field
Nationwide only requires a mortgage valuation report for lending purposes. However, the Housing Association will require a Homebuyers report; except for brand new properties when a mortgage valuation report is sufficient.
Please note that questionnaires must be completed in addition to the application form for equity share scheme cases.
The questionnaires will help provide the information needed to process your case more efficiently. Please send your application and questionnaire to your allocated Service Centre.
