Open Market HomeBuy

Open Market HomeBuy offers equity loans of up to £50,000 so that you purchase 75%* of the equity in a property of your own choice from the open market, eg: through an estate agent, from a newspaper property advert, from an online website, etc.  The remaining 25%* is funded through the Open Market HomeBuy loan, with no interest to pay on that loan.  The loan is repayable at 25%* of the market value** when the property is eventually resold, or you may choose to buy the remaining share from us at some point.  If the property is resold you get back the percentage that you own.  With this scheme there are no rent payments.
* These percentages may vary slightly.
** Market value is calculated on the value of the property at the time of resale.

As HomeBuy Agent, Moat will assess what you can afford taking into account your current household needs and advise you of the amount of loan you will be eligible for.  The amount of equity loan provided, up to £50,000, is placed as a legal second charge on your property. You will need to fund the remainder of the property price through a mortgage and/or savings.

The size of home you buy is based on the number of people that are going to live with you. In general you will be eligible to buy a home of one bedroom size larger than you require.  You will be the freeholder of the property (unless you buy a leasehold flat).

Homes on the open market, including brand new homes, qualify under this option.  Some types of property will not be considered and this will also be explained to you if you proceed.  Other terms and conditions apply and these are explained if you proceed to purchase your new home with an Open Market HomeBuy equity loan.

Important note:
Open Market HomeBuy is currently under government review and is likely to change around October 2006. This change will alter the information contained in this website. We will update this information when more details are known.  If you apply for Open Market HomeBuy there is no guarantee that you will be offered the option as currently described within this website.

Open Market HomeBuy for people who are not key workers

Moat offers a small programme of Open Market HomeBuy to people in priority need who are not key workers.  Availability of funding is very limited and is restricted to a small number of areas. Only people assessed as being in the greatest housing need will be considered.  If you are not a key worker, the options more widely available to you are New Build HomeBuy and Resales.

Open Market HomeBuy for key workers

This works in the same way as described above, with some important differences.  The first is that only qualifying key workers are eligible.

The equity loan is conditional upon you remaining a public sector key worker. It includes an agreement whereby you would have to pay back the loan if you leave your job and are no longer considered a key worker.  If the property is resold you get back the percentage that you own and repay the percentage you have been given.

The location of the property you purchase must be reasonably close to the key worker's place of work (generally within a radius of 20 to 25 miles).

There is a high demand for key worker equity loans and availability is limited.

Please be aware that the market value of properties can go down as well as up.

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.