Helping you buy a home

The government Open Market Homebuy scheme is now available to residents who want to buy a home of their choice on the open market. The scheme is administered by Tower Homes.

How does it work?

You can buy a home of your choice, old or new, anywhere in England. You pay 75% of the value. The government will help you with the remaining 25%.

For example:

To buy a house worth £200,000 you will need to find £150,000 yourself, usually with a mortgage. Tower will pay the remaining £50,000 through a grant it gets to help residents buy their first home.

How does this help me?

Open Market Homebuy could help you buy the home you have always wanted but could not afford. For many L&Q residents it could be the only way they can own a home.

For example:
Perhaps on your own you could afford a home worth £150,000. With Homebuy you could look for a home worth up to £200,000.

With 25% of the cost of a home paid for you, mortgage lenders should offer you a wide choice of mortgages. Cheap deals with lower interest rates and lower fees should be available to you.

For many L&Q residents Homebuy will be a more generous scheme than the old Tenants' Incentive Scheme (TIS). The maximum grant under TIS was £16,000. Under Homebuy the maximum loan is £50,000. Of course, the size of the loan will depend on the value of the home you are buying and what you can afford.

What happens in the future when I sell my new home?

When you sell your home you keep 75% of the value. The other 25% is returned to Tower to help other people buy through the scheme.

Who is able to use Homebuy?

To apply for the scheme:

• You must be buying for the first time (in some circumstances we can help you if you owned a house before).

• You will need a regular income so that you can raise a mortgage.

• You should not have received Housing Benefit within a year of applying.

• You should not have been in rent arrears for the last year.

• You must have a permanent tenancy with a council association or housing association or be a qualified key worker. For more information please see www.housingoptions.co.uk

Does everyone have an equal chance to use Homebuy?

Demand is high and some local authorities may tailor the scheme to meet housing needs in their area. There may be a waiting list in some areas. We will be able to give you more information when we receive an application from you. You can complete an on-line application form at www.housingoptions.co.uk.

How do I apply?

Please visit the Housing Options website for all the details and information about how to apply.

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