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HomeBuy Direct - who can apply?

The HomeBuy Direct scheme covers certain properties in every region of England. Before you can get a home through the scheme, you need be sure that you meet the eligibility criteria.

HomeBuy Direct is open to households earning less than £60,000 a year who would otherwise be unable to buy a home.

You may be eligible if you are either: a first time buyer; previous home owner who can't now afford to buy without help (perhaps because you have broken up with your partner);  housing association or council tenant; a ‘key worker’ (a key public sector worker, like a nurse or teacher).

How does HomeBuy Direct work?

Your local HomeBuy agent will assess your eligibility for the scheme and then look at the options available in your area. There are certain newly built properties that you can get help to buy through the HomeBuy Direct scheme.

You’ll need to be able to cover at least 70 per cent of the cost of the property. This could be through savings and/or a mortgage from a qualified lender regulated by the Financial Services Authority.
 
In most cases you'll still need some money to cover the costs of buying a house, like Stamp Duty, legal fees and any deposit.

If you are eligible you could get an ‘equity loan’ of between 15 and 30 per cent on the cost of a newly built property, you’ll need to repay the equity loan when you sell the property you can choose to repay some or all of the loan sooner by buying additional equity shares in the property (at the market rate)

The HomeBuy Direct scheme will be fully open soon.

What is an equity loan?

Equity loan providers share in any rise (or fall) in the value of the property over the course of the loan. By repaying all or part of the loan sooner, you can reduce the amount your provider is entitled to receive when your home is sold. Equity loans for the HomeBuy Direct scheme will be provided by public funding and the house builders who are participating in the scheme.

Will you have to pay any fees or charges on the equity loan?

During the first five years of the loan, you won’t be charged a fee. After this there will be a small monthly charge.

Can you sell your HomeBuy Direct property?

Yes, you can. When you sell your home, you’ll need to repay your mortgage and equity loan with the money you get from the sale.
If your house has increased in value, you’ll have to share the profit between yourself and the equity loan providers. If you received a 25 per cent equity loan to buy the property, your equity provider gets 25 per cent of the money when you sell it.

If the value of your home has gone down when you sell, you’ll need to repay your mortgage first. Then, you’ll need to repay the equity loan from what is left over.

RJH Construction policy is one of continuous improvement both in construction and design and we therefore reserve the right to make changes without notice.

This website is for guidance only and is not intended to form part of any contract. Whilst every effort has been made to ensure the accuracy of the information contained within this website, some errors may still occur.

R.J.H. Building Construction Limited is a limited company registered in England and Wales with registered number 2800103. Its registered office address is RJH Building Construction Ltd, Brunel Way, Stephenson Industrial Estate, Coalville, Leicestershire, LE67 3HF.