What if I have already applied?

This suspension does not impact customers who already have an 'Ownhome' reference number; you should continue with your home search and purchase.

If you have contacted us before 22nd June 2009 but have yet to hear from us, do not worry, we are currently writing to these customers and will be contacting you very shortly.

What is Places for People?

Places for People is one of the largest property management and development companies in the UK. We manage more than 59,000 homes, and have assets of £2.4 billion.

Our aim is to create places where people and their families can prosper, in a way that does not harm the environment. We do this by building new homes and improving existing neighbourhoods to very high environmental standards. We also offer care and support to individuals, affordable childcare, training, job opportunities and personal loans.

How does the Ownhome loan work?

Places for People could lend you between 20% and 40% of the value (equity) of your home for 25 years (or the term of your mortgage if shorter). You will not have to make any interest payments on the Ownhome loan for the first five years.

After five years you will be charged a fixed interest rate of 1.75% on your Ownhome loan each year. After a further five years your interest will be increased to a fixed rate of 3.75% for the rest of the Ownhome loan period.

This is interest only and no capital is repaid through these monthly payments to reduce the size of your Ownhome loan. The interest is charged on the original monetary value of the Ownhome loan, so if you originally borrow £25,000 you will pay interest on £25,000 regardless of how much the equity is worth in the future.

After 25 years (or the term of your mortgage if sooner) you will have to repay the loan, calculated on the value of your home at the time of repayment.

Depending on the housing market over the coming 25 years, this amount could be less, but could also be substantially more, than we originally lent you. You will receive examples of how much you could end up paying, and you will be sent annual statements.

What's in it for me?

The Ownhome loan could enable you to own a home worth up to 40% more than you could afford with just a conventional mortgage. For example, you could buy a home worth £200,000 with a mortgage for only £120,000. In effect the Ownhome loan from Places for People tops up the amount you can borrow on The Co-operative Bank mortgage.

What other things should I consider?

The Ownhome loan is an equity loan, which means that it is tied to the value of your property. Over time the value of your home will increase (or decrease), and so will the amount that you will need to pay back.

How the property purchase is funded

For example if you have a 40% loan from Places for People on a house worth £200,000 you have borrowed £80,000.

Do I need a deposit?

You do not need a deposit, but you can pay one if you are able.

How the loans are repaid at sale

However, if when you sell your house it is worth £300,000 you will owe Places for People 40% of the value, which means that you will need to pay back £120,000.

When do I have to pay the Ownhome loan back?

You can pay back the Ownhome loan whenever you are able; there is no early redemption or payback charge. The full Ownhome loan will need to be paid back after 25 years (or the term of your mortgage if this is shorter) or if you sell your home. The amount you owe will be calculated on the value of your home at the time of repayment. You will have to pay for an independent valuation and any legal fees associated with the transaction.

Early pay back: You can pay back in instalments of 5% of the value of the Ownhome loan. You will have to pay for an independent valuation, and any legal fees associated with the transaction.

If you sell your home: You can move whenever you choose to. When you move you will have to repay the full Ownhome loan. The amount you owe Places for People will be calculated on the value of your home when you repay the loan. You will have to pay any legal fees associated with the transaction.

After 25 years: The loan will have to be repaid in full after 25 years (or the term of your mortgage if sooner). The amount you have to pay will be calculated on the value of your home at the time of repayment. Depending on the housing market over the coming 25 years, this amount could be less, but could be more than you originally borrowed from Places for People. You will have to pay for an independent valuation, and any legal fees associated with the transaction.

THE GREATER THE INCREASE IN THE VALUE OF YOUR HOME, THE MORE YOU WILL HAVE TO PAY BACK.

What sort of home can I buy?

Ownhome is designed to help people buy a suitable home. As everybody's needs are different, suitability will be assessed individually as part of the qualification process. You are not restricted to purpose-built affordable housing, but can choose any property on the market which is suitable for you and within your budget.

The property must be for entirely residential purposes and be your main home.

The property must be bought with vacant possession, and be immediately habitable. This means that there cannot be any tenants in the property, and it must be in a fit state to live in when you buy it.

Second-hand property must be freehold or have a lease of at least 55 years.

New properties must be freehold or have a lease of at least 99 years. If the property is still under construction the purchase price must be fixed and exchange of contracts must be achieved in 6 months.

Who owns the home?

This is not a shared ownership scheme. You will be buying 100% of your property, so there will be no landlord and no rent to pay. You will also be able to make any alterations that are permitted under planning and building regulations.

What happens if I can't afford to pay the interest on the Ownhome loan?

Places for People cannot give financial advice, however, before we make a loan we will make a full assessment of your ability to repay us. We will not make an offer unless we believe that it is affordable for you.

However, circumstances do change, and if you get into financial difficulty it is important that you contact Places for People immediately.

What happens if I can't afford to pay back the loan after 25 years?

How much you will need to pay back in 25 years' time is dependent on the housing market. Nobody knows for sure what the market will do, but you may have to pay us substantially more than you originally borrowed.

THE GREATER THE INCREASE IN THE VALUE OF YOUR HOME, THE MORE YOU WILL HAVE TO PAY BACK.

You will need to have a repayment strategy, which Places for People will discuss with you when you apply for an Ownhome loan.

How do I know if the Ownhome loan is suitable for me?

Places for People cannot give you financial advice. If you feel you need further guidance we recommend that you seek financial advice from an Independent Financial Adviser. Your local HomeBuy Agent can give you details of Financial Advisers with a knowledge of equity loan products.

Who are The Co-operative Bank?

The Co-operative Bank, including smile, is part of The Co-operative, the UK's largest consumer co-operative.

The Co-operative Bank is the only UK high street bank with a customer-led Ethical Policy. They take a stand on issues such as climate change, the arms trade and human rights.

By providing excellent service, competitive products and a choice of ways to access your accounts, they consistently prove that ethics and success can go hand in hand.

How does the mortgage fit withinthe Ownhome loan scheme?

Ownhome is a package delivered in partnership by Places for People and The Co-operative Bank. Once you have qualified for an Ownhome loan with Places for People, you can apply for a mortgage from The Co-operative Bank to cover the rest of the cost of your new home.

What sort of mortgage can I get?

If you qualify for the Ownhome loan, you can choose from a range of simple and flexible mortgages available from The Co-operative Bank.

You can choose between a fixed, discount or tracker mortgage that best suits your circumstances, on a repayment basis for up to 35 years.

There are no additional premiums, fees or charges for being an Ownhome customer.

All mortgages are subject to status and affordability.

What sort of valuation do I need?

You will need to get a full building survey. The Co-operative Bank will guide you through the complete mortgage process.