Mychoicehomebuy
The government withdrew all versions of their Open Market Homebuy scheme and on 1 April 2008 introduced an equity share scheme called MyChoiceHomeBuy for England only, to replace them.
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%. Further details of our lending criteria can be found in our Lending Criteria A-Z
- 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.
