Ownhome is provided by a partnership between Places for People and The Co-operative Bank. OwnHome is part-funded by the government, and is designed to help people who cannot currently afford to purchase suitable accommodation, make their first step onto the property ladder.
Places for People could lend you between 20 and 40% of the value of your new home - with no interest payments for the first five years.
The Co-operative Bank could offer you a choice of repayment mortgages from their award winning range on the remainder.
For example - this means that if you qualify for a mortgage of £120,000, you could buy a property worth up to £200,000.
After five years you would be charged a fixed rate of 1.75% interest on your Ownhome loan each year. After a further five years this would increase to a fixed rate of 3.75%.
For more details see FAQs
It is likely that you will have to repay Places for People more than your borrowed, if that is the case the effect will be similar to a loan under which you pay credit charges at a rate dependent on the growth in house prices. In addition you will have to pay some fees and, after the first five years, some interest. For example if you pay legal and valuation fess of £300 interest of £7,000 and the value of the house increases by 4% a year, the sum that you will repay, if you sell your house after ten years, will be equivalent to borrowing under a loan with an APR of 4.71%. Credit will be granted subject to status.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE AND ANY OTHER LOAN SECURED ON IT.
