What it is
This scheme offers shared equity loans to help in the purchase of any home on the open market; this could be a second hand property or a new home from a private developer.
How it works
The client finds a suitable property, normally via an estate agents or a private developer, and applies for an equity loan for anywhere between 15 and 50 percent of the properties market value. There is a low monthly interest on the loan of 1.75 percent per annum, which annually increases in line with inflation. In order to purchase through this option, a client will most likely have to take out a mortgage in addition to using anysavings to contribute to a deposit.
Options after buying through MyChoice HomeBuy
The home owner has the option of paying off the equity loan at any point during the mortgage term. Alternatively at the end of the mortgage, the equity loan must be paid off in full.
If the property is sold, the loan is redeemed as a proportion of the market value at the time of sale.
In 2009 government priorities to support the new build sector resulted in the suspension of MyChoice HomeBuy in favour of HomeBuy Direct, then FirstBuy and now Help to Buy Scheme.