HomeBuy Direct
HomeBuy Direct is a government supported scheme designed to help first-time buyers onto the property ladder. It gives you access to an interest only top-up-loan of up to 30% of the purchase price of a new home in selected developments.
The remainder of the purchase price is then funded by a conventional mortgage. The buyer has 100% ownership of the property and the HomeBuy Direct loan is simply placed as a second charge/mortgage. Potential buyers should remember that specific mortgage providers may require a minimum deposit.
The HomeBuy Direct loan is co-funded by the government and developer. There is no interest or repayment on the loan for the first 5 years. From year 6 you will pay 1.75% on the loan. When you sell the property you will repay the same percentage that was funded at the time of purchase, or any outstanding percentage. You can also repay the loan in instalments.
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To apply, you need an income of You need to get a mortgage for the value of Value of the unsold equity Get closer to your needs: |
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HomeBuy Direct
Homebuyers, Mat Villa, 27 and Nicola Milne, 24, have recently secured for themselves their first property in Milton Keynes thanks to Persimmon Homes & Catalyst Housing group. Mat, a regional sales manager for an orthopedic company and Nicola, a teacher, had lived together in a rented flat, however, they were keen to invest in a property and recognised that it was an ideal time to buy. Not long out of their studies, the couple were conscious that they might struggle to come up with a deposit, especially in Milton Keynes where the property market is booming, so they explored possible government housing options and discovered that they qualified for the HomeBuy Direct scheme at its Larkswood development in Newton Leys.
The couple visited the development, which has a range of two, three and four bedroom homes available and got a first hand look at the Jay house type, thanks to the showhome. After learning that they could move in before Christmas, around the time their rental agreement comes to an end, they decided the Jay was the home for them.
Mat said: “HomeBuy Direct is a fantastic option for first-time buyers struggling to get on the property ladder and made perfect sense for us, as our monthly mortgage repayments are around the same price as were paying for our rent, except now the home is ours.
Claire Lambert, head of sales for Persimmon Homes Midlands, said: “Mat and Nicola were savvy enough to visit our Larkswood development in Newton Leys, where we’ve had much success with HomeBuy Direct, having secured five sales under the scheme.
Buying from Persimmon with the Support of Catalyst Housing Group has been a really smooth process and the sales advisers at Larkswood have been great. They took the time to explain the whole process to us and have been really supportive.
| Name | Mat Villa & Nicola Milne |
|---|---|
| Previous Living Situation | Renting |
| Scheme | Homebuy Direct |
| Development and/or area | Milton Keynes |
| Housing/scheme Provider | Persimmon Homes / Catalyst Housing Group |
