Please note this scheme has now ended
Are You A First Time Buyer?
If you’re a first-time buyer looking to make your first step onto the property ladder - we can help!
Working in conjunction with the Government initiative, MyChoiceHomeBuy and Plumlife, Dandara can help make the dream of owning your own home, a reality.
You could receive up to 50% towards the purchase of a new home at our Spectrum development where apartments start from as little as £119,950.
About the Government Shared Equity Scheme
MyChoiceHomeBuy is a shared equity scheme, which has been created by the Government to help first-time buyers and other people who are finding it difficult to get onto the property ladder, to buy a home of their own.
The scheme enables you to choose a suitable property on the open market in England and a mortgage from an approved lender that best meets your needs.
How does the MyChoiceHomeBuy scheme work?
- You can borrow up to 50% as an equity loan towards the home of your choice at Spectrum in Manchester
- The amount of money you are able to borrow will depend upon the type of home you need and the size of mortgage you can afford – but this could be as much as £100,000
- You will pay a monthly fee of 1.75% on the equity share bought through the scheme. The fee will increase up to RPI (Retail Price Index) plus 1% annually
- After you have lived in your home for one year, you can choose to pay off the equity loan - either as a lump sum, in stages or when you come to sell your property - whichever is easier for you. The amount you repay will be based on the value of your home at the time you want to repay the loan; for example, if MyChoiceHomeBuy contribute 15% towards the purchase price, you only repay 15% of the value of your home when you sell – even if this is less than you originally paid
How do I know if I'm eligible for MyChoiceHomeBuy?
Plumlife will be able to tell you if you are eligible, but in general terms the scheme covers:
- First time buyers
- Key Workers, where there is a Key Worker Living programme
- Council and Housing Association tenants
- Employed people with a local connection i.e. working or living in the area and serving a community in the area or nearby
- People whose household income is less than £30,000 per year. Please note that this does vary, however Plumlife can confirm the current income cap as this is reviewed annually
You also need to be able to earn sufficient income to cover:
- Your mortgage repayment, which you make to the lender
- Your 1.75% monthly fee
How the scheme could work for you
Here's how MyChoiceHomeBuy could work for a single household.
| SINGLE HOUSEHOLD |
| Value of the Property |
£170,000 |
| Your single annual income |
£20,000 |
| Mortgage from participating lender (4 x single income) |
£80,000 |
| PLUS contribution from your savings |
£5,000 |
| = (50% of the property value) |
£85,000 |
| MyChoiceHomebuy loan (50% of the property value) |
£85,000 |
| Total |
£170,000 |
| MONTHLY REPAYMENTS |
| Mortgage (based on interest only at 6% interest rate) |
£400 |
| MyChoiceHomeBuy fee |
£123.95 |
| Total monthly repayment |
£523.95 |
| Total monthly repayment without MyChoiceHomeBuy fee
(if purchased on same terms as above example)
|
£825 |
| You save per month |
£301.05 |
Here's how MyChoiceHomeBuy could work for a joint household.
| JOINT HOUSEHOLD |
| Value of the Property |
£170,000 |
| Your Joint Annual income |
£30,000 |
| Mortgage from participating lender (3.5 x joint income) |
£105,000 |
| PLUS contribution from your savings |
£10,000 |
| = (67% of the property value) |
£115,000 |
| MyChoiceHomebuy loan (33% of the property value) |
£55,000 |
| Total |
£170,000 |
| MONTHLY REPAYMENTS |
| Mortgage (based on interest only at 6% interest rate) |
£525 |
| MyChoiceHomeBuy fee |
£80.20 |
| Total monthly repayment |
£605.20 |
| Total monthly repayment without MyChoiceHomeBuy fee
(if purchased on same terms as above example)
|
£800 |
| You save per month |
£194.80 |
Want to know more?
To find out more about the first time buyer shared equity scheme please fill in the enquiry form or call us on 0161 829 3040
Download the Shared Equity First Time Buyer PDF leaflet
Download the pdf version of the First Time Buyers shared equity scheme
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