Homebuy Direct – All There Is To Know
HomeBuy Direct Scheme UK – How does it work?
What is the HomeBuy Direct Scheme?
HomeBuy Direct is part of the HomeBuy UK Government initiative to help people who cannot afford to buy a home. There are various HomeBuy schemes, but the HomeBuy Direct scheme is an equity loan which helps people priced out of the market to buy new build homes on selected developments. You will need to demonstrate that you are unable to afford a home that meets your housing needs on the open market in your area.
Who is eligible for the HomeBuy Direct Government Scheme?
You should check with the HomeBuy UK Government website, or contact your local HomeBuy agent to confirm your eligibility. If you already own a home then it is likely that you will not be eligible for any government-funded assistance, except in rare circumstances. Applications for the HomeBuy Direct scheme are prioritised so even if you meet the eligibility criteria, you may not be in the highest priority groups. This means that if there are more applicants than eligible properties, applications will be prioritised by applicant groups.
How much will it cost to buy through the HomeBuy Direct scheme?
You will need a deposit; the amount will vary depending on the mortgage you secure but you will need at least a 5% deposit. You will also need to cover the other costs associated with buying a property including the cost of the mortgage valuation/survey, legal costs, and stamp duty. You may also incur additional costs for removals, redecoration and re-connecting phones etc. These costs will usually amount to around £4000, but your local HomeBuy agent will be able to tell you how much you will need in savings.
You will need to ensure that you have enough savings to cover all of these costs before beginning the buying process. Remember, if you do not keep up the repayments on your mortgage your home is in danger of repossession, so it is vital that you make sure that you can afford all of the costs associated with owning a home.
If you aren’t eligible for the HomeBuy Direct Government Scheme, HomeBuy UK may still be able to help you.
HomeBuy Direct is not the only government scheme to help people in the UK get on the property ladder. HomeBuy UK consists of a number of schemes which can help eligible people get on the property ladder. There are 3 types of scheme, equity loans, shared ownership and rent to buy. Visit the HomeBuy UK Government website to find out if there is a scheme to help you.