South West Homes

Scheme Type

Shared ownership

Equity Loans

Try Before You Buy

Scheme Name

Shared Ownership 

Resales 

HomeBuy Direct 

FirstBuy 

Developers' own schemes 

Rent to HomeBuy 

Highway Code

You buy between 25% and 75% of your home and pay a subsidised rent on the remainder. You can buy more shares until in most cases you own 100% of your home. Shared Ownership is the new name for New Build HomeBuy.

These are properties that have already been bought through shared ownership in the past, and where the owners are now looking to sell their share and move on. You buy the share they are selling and pay a subsidised rent on the remainder.

You buy 100% of your home but only have to cover 70% with your mortgage and deposit. The remainder is covered by an equity loan funded jointly by the government and housing developer. There’s nothing to pay on the loan for five years, after which there’s a small charge which increases each year.

A new scheme where you buy 100% of your home but only have to pay for 80% initially – and you only need 5% as a deposit. The rest is covered by an equity loan for which there’s no charge for the first five years. After this there’s a small charge which rises each year.

Many private housing developers have their own equity loan scheme, and the details vary but in general you pay for between 70% and 85% of the value of your property, and the rest is covered by an equity loan. There’s often nothing to pay for this loan, but you’re expected to buy the remaining equity within ten years.

This is available on selected new developments and gives you the opportunity to rent the home you wish to buy at a reduced rate, on the understanding that you’ll buy it through shared ownership within a specific time.

Fast Lane

Ideal if you live in an area where prices are high as you only need to buy the percentage you can afford (just as long as it’s over 25%), so you need a smaller mortgage. It’s also perfect if you don’t have much in the way of savings as you only need to find the deposit for the share you’re buying.

Not limited to new builds so properties are likely to be in established communities and you may have a wider choice of styles. There could be more flexibility with regards to who is eligible.

Ideal if you’re ‘almost there’ in terms of what you can afford, or want to buy somewhere with growing room that will suit you for a while longer – for example if you’re planning an addition to the family. A lot of mortgage lenders count the equity loan towards your deposit, so you may only have to come up with 5% of the share you’re paying for.

Like its predecessor HomeBuy Direct, FirstBuy is great if you can almost afford your home but need a bit of help, and don’t have a thumping great deposit to start you off. Only having to find a 5% deposit removes a huge hurdle for many people.

Good for anyone who is confident of their ability to buy the remaining equity within the timescale they need to. In addition, the eligibility criteria might be less strict.

Perfect if you can demonstrate that you could afford to buy 25% of your home, but are not in a position to do so straight away – for example you earn enough for a mortgage but don’t have a deposit saved. It gives you a chance to put down roots and move into your new home sooner.

Detour

The properties are new-builds which may not be to your taste if you’re looking for period features, though some are conversions of older buildings.

You’re unlikely to be able to buy a smaller share than the previous owners are selling, though it may be possible to buy more. And you’re buying someone else’s taste in décor – though it’s fun to change it!

There’s a limited number of homes available through HomeBuy Direct, and no more funding planned, so it’s best to check with your HomeBuy Agent to see what’s on offer in your area.

This is a new scheme so there won’t be many properties available through it right now, though that gives you a bit more chance to save for your deposit! Your HomeBuy Agent will have details of homes as and when they’re available.

You have to approach each developer individually as they don’t need to advertise their homes through the HomeBuy Agent. But if there’s a new development going up in your area that takes your fancy, it’s always worth asking about an equity loan scheme.

There are very few Rent to Buy properties available, and no more planned. You have to be disciplined to use the 20% discount on your rent to save for your deposit

BUY FROM JUST 25%

WIDE CHOICE

LIMITED AVAILABILITY

NEW SCHEME

LESS DEPOSIT NEEDED

SAVE TO BUY YOUR HOME