HomeBuy Direct Mortgages 
The ‘stepping-stone’ into home ownership
HomeBuy Direct enables eligible buyers to:
- purchase a new property with no deposit
- take out an affordable mortgage of 70% of the purchase price
- get help from the Agency and the housebuilder
HomeBuy Direct is a new equity product from the Homes and Communities Agency, working in partnership with developers. It is designed to help first time buyers buy a new build home from a property developer.
Eligible applicants will need to take out a mortgage of at least 70% of the purchase price. 'Ibis is topped up with an equity loan. The Homes and Communities Agency and the developer provide assistance in the form of two equal equity loans to make up the cost of the up to 30% of the full purchase price.
| Example of HomeBuy Direct home ownership | £ | % |
|---|---|---|
| Open market price of new home | 200,000 |
100 |
| HomeBuy Direct buyer affordable mortgage @ 70% | 140,000 |
70 |
| HomeBuy Direct buyer total contribution | 140,000 |
70 |
| Agency and housebuilder assistance 30% equity loan (via two equity loans at 15% each) | 60,000 |
30 |
Monthly mortgage cost with a 4.59%mortgage rate-3 yr fixed-30 year term. This rate is available as of 24/07/09 subject to approval and change at short notice. |
£716.88 |
The equity loans are interest free for the first 5 years. After that a fee is payable on the equity loans of 1.75% rising annually by the Retail Price Index (RP1) plus 1%. Your HomeBuy agent will assess and approve your eligibility for Homebuy Direct.
>> Download the Homebuy Direct Booklet
We normally charge a fee for mortgage advice. The amount will depend on your circumstances. A typical fee would be £299
Imperial Independent Mortgage Services Ltd is an Appointed Representative of Personal Touch Financial Services Limited which is Authorised and Regulated by the Financial Services Authority.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
