South West Homes

HomeBuy Direct

What is  HomeBuy Direct? 

This option offers an equity loan of up to 30% towards the purchase of a newly built property on selected developments.

How does HomeBuy Direct work?

You buy a minimum of 70% of the market value of a property. An equity loan of up to 30% is provided to assist your purchase. There are no payments on the loan for the first five years. 

After five years there is a fee of 1.75%, which increases annually in line with inflation. You will need to raise a mortgage to purchase through this scheme. You can also use any savings you may have to contribute as a deposit towards your share.

• Eligibility for HomeBuy Direct will be the same as for our other HomeBuy products (ie households earning £60,000 or less who could not afford to buy a suitable property on the open market without assistance in the area where they live or work)
• You will also be subject to an affordability check, designed to assess the size of equity share that they are able to afford and sustain
• If you qualify for the scheme, you'll be invited to choose one of the HomeBuy Direct properties brought forward by the developers.
• The purchaser will receive an equity loan of up to 30% of the purchase price of your chosen property. The equity loan will be co-funded on equal terms by Government and by the developer supplying the property.  You must contribute the remaining equity (a minimum of 70 per cent), through a mortgage and any deposit
• There will be no fee charge for the equity loan for the first five years but a fee will be charged from year six onwards.
• You can redeem the equity loan in installments, purchasing up to 100% equity 12 months after your initial purchase by buying additional equity at the market rate
• You will be able to sell your HomeBuy Direct home on the open market. When you do, you'll repay the equity loan by way of a share of the sale proceeds. This repayment will be shared equally between Government and the developer.
• If the value of the property has increased by the point of sale, you, the developer and Government will all share in this increase. If the value of the property has gone down, Government and the developer will only share the sale proceeds that are left over once the mortgage has been repaid.

Where can I get more information?

Please download our brochure by clicking here.

Where can I purchase a home using HomeBuy Direct?   (click on each development for more information)

Barratt Homes, Wyndham Park, Yeovil

Barratt Homes, Torre Marine, Torquay

Bloor Homes, Trinity Park, Frome 

Bloor Homes, Angel Farm, Coleford 

Persimmon Homes, Okemont Grove, Okehamptonn

Persimmon Homes, Osmunds Fields, Salisbury

Persimmon Homes, Quakers Walk, Devizes

Persimmon Homes, Dauncey Gardens, Off Skylark Road, Melksham

Persimmon Homes, Victoria Fields, Warminster

Persimmon Homes, Persimmon Vale, Kingsway, Gloucester 

You can buy additional shares at a later date until you own 100%. This is calculated in the current market value at the time that you purchase the additional shares.  If you wish to sell your property, the equity loan is repaid as a percentage of the market value at the time of sale.

What happens when my mortgage expires when I am in a HomeBuy Direct property?

You can find out more information about remortgaging your home by visiting Housing Options Plus.  They look after any enquiries after you have moved in to your HomeBuy Direct home.