Equity Share Schemes

Questionnaires must be completed in addition to the application form and are available only from the internet.

The questionnaires will help provide all the information needed to process your case more efficiently.

Please send your application and questionnaire to your allocated Service Centre.

For information regarding our criteria on the Government's MyChoiceHomeBuy scheme, please see our Lending Criteria section. For criteria on all other equity share cases, see below.

LENDING TERMS

  • the loan agreement must not be for more than 50% of the open market price/value for non builder equity share schemes so the applicants share is a minimum 50% of the open market price/value
  • the loan agreement must not be for more than 25% of the open market price/value for builder equity share schemes so the applicants share is a minimum 75% of the open market price/value
  • we must have first charge over the whole property
  • the loan agreement under any scheme must not contain a requirement to repay it within 5 years and there must be no interest charged
  • applicants must be informed that we cannot guarantee to make additional funds available at a later date in order to repay the loan
  • LTV% calculations for both products and credit scoring will be based on the open market price/value. This will mean that, in almost all cases, the applicants will not have to find a deposit from their own resources as the LTV will be below our maximum. We will not lend more than the reduced price. Please see example below: please note devaluation will have an impact on this

Example:

    Equity Share 75/25 split (25% retained by equity shareholder)

    Full price/value of £100,000

    Reduced price/value of £75,000

    Loan Requested £75,000 (loan requested cannot exceed amount of reduced price/value)

    LTV = 75% therefore no requirement for any further deposit