What Help is Available?
These products are available to help you into home ownership through the national Homebuy programme:

Open Market HomeBuy

Who is eligible?

Three main groups are eligible for Open Market HomeBuy. Those who are unable to buy a home without help who are:

1.	Existing Local Authority and Housing Association tenants, or those with a priority need on a housing waiting list
2.	Key workers (i.e. education, health and police). In Cumbria tourism, agriculture and sectors that improve the county's economy are also considered
3.	Other priority first time buyers

Other situations are considered, for example those in need of a home following a relationship breakdown or if the property is unsuitable for current needs.

What options are available?

There are two Open Market HomeBuy options available -

MyChoiceHomeBuy & Ownhome.

MyChoiceHomeBuy is part funded by the government and is offered by eight housing associations, each of which is an equity loan provider in its own right.

Metropolitan Home Ownership (MHO) is one of the 8 housing providers who have developed the MyChoiceHomeBuy product. MHO is working in partnership with HomeBuy Agents across the region to deliver this product.

MHO is part of Metropolitan Housing Partnership; they are a charitable business, part of a non-profit making Registered Social Landlord (RSL or Housing Association).

Key features of the MyChoiceHomeBuy product include:

	Available throughout England
	You can borrow between 15% and 50% of the property price
	For example, if you qualified for a mortgage of £60,000, you could buy a property for a maximum of £120,000 (depending on your circumstances)
	The maximum equity loan available is £65,000
	You must maximise your mortgage potential i.e. the MyChoiceHomeBuy loan will be a ‘top-up’ loan
	You will pay a monthly interest on the loan based on 1.75% a year (this will rise in line with inflation each year)
	You would be able to obtain a conventional mortgage from a range of lenders who will take a first charge on the property

You will own the home and the equity loan will be secured by a second charge against the property.

The MyChoiceHomeBuy loan is an equity loan - which means it is based on a percentage of the value of the property.

The equity loan is to be paid back upon sale of the property, or upon the end of the conventional mortgage term. However if you are able to pay this back sooner, there is no early redemption penalty or payback charge.

You would not have to pay a deposit, though you could if you wanted to.

You must register with us initially and we will carry out headline checks, and then we will send your form onto MHO. MHO will then continue the process with you, and we will be kept updated as to your application's progress.

How do I apply?

To apply for this scheme you will need to fill in an Affordable Homes Cumbria Application Form. You can download the form by selecting 'Apply Online' at the top of the page and at the top of the page and send it to:

FREEPOST Affordable Homes Cumbria c/o Eden Housing Association, Blain House, Bridge Lane, Penrith, Cumbria, CA11 8QU

OR call our freephone number 0800 358 1400 to discuss the scheme and request a form

You can also request an application form or further information by emailing enquiry@edenha.org.uk

Ownhome is offered by Places for People (a property management and development group) and the Co-operative Bank. Between the two organisations they can provide funding for 100% of the property price, with a conventional mortgage from the Co-operative Bank and an equity loan from Places for People.

Key features of the Ownhome product include:

	You can borrow between 20% and 40% of the property price in the form of an equity loan, the remainder to be funded by a mortgage from the Co-operative bank.
	If you qualified for a mortgage of £60,000 from the Co-operative bank, for example, you could buy a property of up to £100,000 (depending on your circumstances)
	You must maximise your mortgage potential i.e. the Ownhome loan will be a ‘top-up’ loan
	You can choose from a range of mortgages from the Co-operative bank. This must be a minimum of £20,000 and a maximum term of 25 years.
	The remainder will be funded by an equity loan, of which no interest will be paid in the first five years.
	After 5 years, you will be charged at a fixed rate of 1.75% interest per annum. After a further 5 years the interest rate will be increased to a fixed rate of 3.75% interest per annum.

The Ownhome loan is an equity loan - which means it is based on a percentage of the value of the property.

The equity loan is to be paid back upon sale of the property, or upon the end of the conventional mortgage term. However if you are able to pay this back sooner, there is no early redemption penalty or payback charge.

You would not have to pay a deposit, though you could if you wanted to.

You must register with us initially and we will carry out headline checks, and then we will send your form onto Places for People. Places for People will then continue the process with you, and we will be kept updated as to your application's progress.

If you qualify through Places for People's financial checks, you are then to select a suitable mortgage from the Co-operative bank

How do I apply?

To apply for this scheme you will need to fill in an Affordable Homes Cumbria Application Form. You can download the form by selecting 'Apply Online' at the top of the page and at the top of the page and send it to:

FREEPOST Affordable Homes Cumbria, c/o Eden Housing Association, Blain House, Bridge Lane, Penrith, Cumbria, CA11 8QU

OR call our freephone number 0800 358 1400 to discuss the scheme and request a form

You can also request an application form or further information by emailing enquiry@edenha.org.uk

New Build HomeBuy
This scheme (formerly known as shared ownership) enables you to buy a share of a newly built home on a specific development.

You would buy a share of the home ranging from 25% to 75% (this may vary from scheme to scheme), depending on what you can afford. You will pay a mortgage on the share you buy and you will pay rent on the remaining share. The maximum rental charge will be 3% of the unsold equity with an average target rent of 2.75%.

For example, based on a property with a full market value of £150,000 if you purchase a 50% share then the rent to pay on the remaining 50% based on 2.75% would be £40 per week.

Example based on £150,000.00 house

* assumed for the purpose of this example
** Halifax Bank of England tracker Variable Rate 13/04/07
*** rent figure used above is based on 2.75%
For illustration purposes only

The developer will retain the freehold and will grant a long lease to you, this is called leasehold.

You will be fully responsible for all maintenance charges and outgoings, in the same way as any other homeowner.

With flats/apartments the purchaser will have to pay a service charge to cover any estate management services, and providers will set up and manage a sinking fund to cover the cost of longer-term works.

Purchasers will be able to buy further shares in their homes, if they can afford to do so.

Shared Equity

This scheme is very similar to the above. The main differences are:
You will be a freeholder of your share
The share you can purchase is fixed at 50%
There is no rent to pay

What do I do now?

Click here to go to the on-line application form or ring 0800 358 1400

Future Products:

Social Homebuy - not currently available

You buy a share in your current home. NB Your landlord may not be operating this scheme.
Who is it for: social tenants
What do you buy: a share of their existing home
How much do you buy: at least 25% with a discount linked to RTA discounts
What else do you pay: All management and maintenance costs, and a rent capped at 3%, with a target average of 2.75%

English Partnerships First Time Buyers initiative - not currently available
This is a shared equity product where you buy a minimum equity share of 50%, your equity share equates to 3 or 3.5 x your income and buyers cannot choose to acquire a lower share. You can acquire more equity in minimum purchases of10%.
You pay charges to English Partnerships on the un-purchased equity; 0% for first three years, which then Steps up from 1% in year 4 to 3% in year 6.
Who is it for: