All member housing associations work closely with their respective local authorities and new house builders to provide brand new affordable homes for sale utilising an equity loan. This is available to first time buyers who cannot afford to purchase a property outright but are able to meet the long term financial commitment of home ownership. To check if you qualify, please refer to the Eligibility Criteria.
The properties are offered for sale on a ‘shared equity’ basis which means you purchase a percentage of the full open market value of the property. The housing association will provide an equity loan for the remaining percentage which is retained as a Charge on the property. Unlike your mortgage, there are no repayments due to the housing association. The loan may be paid back voluntarily or upon a future sale.
The percentage you are able to purchase may vary from development to development. It may be fixed at a given percentage, eg 70%, or you may have the opportunity to purchase between 50% and 90%, dependent upon your affordability.
In the future you will have the opportunity to increase your equity share by purchasing additional equity from the housing association (in portions of no less than 10%). You may also purchase the whole amount of equity outright from the housing association but this is normally restricted to the first 3 years of occupation. You may not choose to do either as there are no time restrictions of when the equity loan has to be repaid other than upon a future sale.
* On specific developments, you may have the opportunity to reduce your equity share by offering back a percentage of equity (no less than 10%) to the housing association who may purchase it, for example, if your circumstances change and you can no longer sustain the existing level of mortgage. Please note, however, you will not be able to reduce your mortgage to less than 50% of the property’s value.
* You may offer your property back to the housing association who may purchase all your equity share thereby owning it outright and allow you to remain in the property as a tenant paying rent
* Please refer to the individual developments under ‘Homes for Sale’ as these options are only available where stated.
This website provides detailed information on the buying options, along with help and advice on how to apply.
If you earn a single / joint salary of approximately £15,000 – £40,000
Homes within Reach could help you get on the housing ladder
‘Homes within Reach’ is not suitable for everyone. Please read the selection criteria information carefully to be sure you are eligible for consideration.
All the buying options require a purchaser to arrange a mortgage from an approved lender. We therefore strongly advise you to seek your own financial advice. This will provide you with a clear idea of the costs and obligations of home ownership. See ‘home buying costs’ for more details.
Have you registered with Homes within Reach yet?