Home Buy

What is Homebuy?

Homebuy is a new 'home ownership initiative', which helps people to buy a home of their own choice, on the open market.  If you can afford to buy 82.5% of a property but not the rest then Mercian Housing Association, the Government approved Homebuy Agent for the West Midlands, may lend you the other 17.5%.

There are other Homebuy Schemes being developed.

Who can apply?

The only people that can apply for the scheme are:

• Existing tenants of Registered Social Landlords and Local Councils in rented accommodation or
• Those people who are on a waiting list who are nominated by their local Council as being in need.

This helps to reduce waiting lists in areas where there is a shortage of social Housing.

Please note you must be able to show that you cannot buy a suitable home for your needs without the help from Homebuy.

You must not be in rent arrears or in breach of your tenancy agreement.

You must not be receiving Benefit or have received any payment during the 12 months before you apply for Homebuy.

If I qualify, what happens next?

If you qualify for the scheme you will need to contribute 82.5% of the purchase price of a home of your choice through a mortgage, personal savings or both.  We will lend you the remaining 17.5%.  If you are to arrange a mortgage this must be through an approved lender ie, a Building Society, a Bank, a Friendly Society or Insurance Company.

There are no monthly payments on the loan from Mercian Housing Association that covers 17.5% of the purchase price; instead you repay it when you sell the home.  The amount you repay will be 17.5% of the value of the home at the time you sell.  If you want to you may repay the loan before you sell in which case what you repay will be based on the value of your home when you pay back the loan, it is important to remember that the loan must be repaid when you sell the home.

When you buy through Homebuy you will own the property outright so please remember that like other homeowners you will be responsible for repairs and maintenance as well as meeting your mortgage repayments.

Who do I contact for more details?

To find out more about Homebuy and to check your eligibility, please contact: