Mortgage Assistance for key workers- incl HM Forces?

Discussion in 'Finance, Property, Law' started by Azrael2006, Apr 3, 2008.

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  1. I have had mentioned by a few civvy mates that there is a new government scheme that basically acts as our LSAP for Key workers. Basically we can get a discounted mortgage due to being a key worker.

    Does anyone know if this is true and where I can find further info? I have tried googling it but cant find anything that looks trustworthy.

    many thanks in advance
  2. One of the lads at my last unit was doing this. I'm pretty sure he was able to do it though I can't confirm 100%.
  3. The is called the Open Market Homebuy Scheme. Effectively the government buy a stake in your house - you buy the rest. You pay the mortgage + a very low interest rate on the other part. It's just been relaunched and I will post up more information on it as soon as I can.

  4. A little more information for you...

    Under the OWN HOME scheme, you can have up to 40% of the property bought under the scheme. You pay for the balance with a mortgage which must be with the Co - Op Bank. As for the payments on the 40% - you pay nothing for the first 5 years, 1.75% for the next 5, and 3.75 from year 10 onwards.

    Under the MY CHOICE scheme, you can have up to 50% of the property bought under the scheme. You can pay for the balance with a mortgage from anyone. You pay a fixed rate of 1.75% for the term.

    With both these schemes, you are only ever paying interest on the part you do not own. You do have the option of buying out the extra part of your house you do not own at a later date. Failing that when you sell you have to pay back the amount borrowed plus any increase in value. An example below...

    Purchase price £150000

    You get mortgage for £100,000 and take out £50,000 through the MY CHOICE scheme.

    You then pay your mortgage + interest at 1.75% on the 50,000.

    If you sell in 10 years, and the house is worth £210,000, you would then pay back £70,000 at the end of the deal.

    ie: if they advance you 30% of the purchase price - they get back 30% of the sale price.

    More information can be had at HousingCorp


  5. Many thanks for your replies everyone. I can know bury my head in some of those links!

    Have a good weekend
  6. Stephen,

    I see "Regular Armed Forces personnel (including MPGS), MOD Police, Defence Fire Service and clinical staff in MOD medical establishments of all personal status categories" are eligible for key worker status, what about members of NRPS - paid less than regulars!!

    Any ideas

  7. Do they have these schemes for Wales and Scotland or is it confined to England only?
  8. Paywog...

    Sorry not sure what the score would be with NRPS... full details of the schemes still to be released but would reccomend any NRPS interested should contact their local housing contact through the link I put in above and ask the question direct - or go through to the Joint Service Housing Advice Office...