Shared Equity (Help to Buy)

Clients looking to purchase their home under the Help to Buy: Equity Loan scheme or wishing to remortgage their existing Help to Buy mortgage may be unsure of the options available to them. That’s why we’ve developed our Help to Buy purchase and remortgage (including retention of the equity loan) product range.


How we can help

Shared Equity - purchase

If your clients want to purchase their newly built home under the Help to Buy: Equity Loan scheme, they can purchase their new property with a Shared Equity mortgage. Your clients’ cash deposit contribution must be a minimum of 5% of the full purchase price and be provided independently from the scheme. The Shared Equity product range of mortgages has a maximum 75% LTV.

View Shared Equity purchase products


Shared Equity - remortgage

There are three remortgage options available to existing equity loan clients:

Option 1 – Remortgage and repay all of the equity loan

If your clients want to exit the Help to Buy scheme, they can remortgage their current property and increase their total borrowing in order to repay the equity loan in full.

To calculate the amount required to repay all of the equity loan, your clients will need to have the property valued by a RICS (Royal Institute of Chartered Surveyors) Certified Surveyor.

Once a valuation report has been generated, your clients must submit it to Target (the Homes England representatives) who will then provide a repayment figure to your clients' solicitor.

A £200 administration fee is payable to Homes England for redeeming the entire equity loan. To avoid delays, this should be paid when your clients send their valuation report to Target.

Our standard remortgage range is available for this option.

View remortgage products

Option 2 – Remortgage and retain the equity loan

If your clients want to remain in the Help to Buy scheme, they can retain their equity loan and remortgage to the West Brom. To do so, however, they will need consent from Homes England and certain requirements must be met for the request to be considered:

  • The new loan must not exceed the existing loan amount with the current lender without prior agreement from Homes England.
  • The mortgage term must not exceed the term of the existing mortgage. For example, if the applicant(s) is remortgaging a 25 year mortgage which is five years into the term, the new mortgage cannot exceed 20 years

A £115 administration fee is payable to Homes England for retaining the equity loan. To avoid delays, this should be paid when your clients submit their request for consent.

Our Help to Buy Remortgage range is available for this option.

View Shared Equity remortgage products

Option 3 – Remortgage and repay part of the equity loan (staircasing)

Staircasing is the partial repayment of the equity loan without the sale of the mortgaged property. Your clients can partially repay their equity loan and remortgage to the West Brom. The minimum voluntary amount your clients can staircase at one time is 10% of the total value of the property at the time of staircasing. To do so, clients will need to have the property valued by a RICS (Royal Institute of Chartered Surveyors) Certified Surveyor to calculate the amount required to repay part of the equity loan. Clients will need consent from Homes England and certain requirements must be met for the request to be considered.

A £200 administration fee is payable to Homes England for repaying part of the equity loan.

Our Help to Buy Remortgage range is available for this option.

View Shared Equity remortgage products

Important information

  • Our standard lending criteria applies
  • For Shared Equity purchase, maximum LTV 75% subject to a minimum 5% being provided independently from the scheme
  • To repay the equity loan up to 90% LTV
  • To partially repay the equity loan up to 75% LTV
  • To retain the equity loan up to 75% LTV
  • Additional borrowing may only be considered for the purchase of additional equity of the property
  • Only permitted with a Capital and Interest repayment type
  • Term limited to a maximum of the remaining equity loan term
  • Further advance or remortgage applications to repay the equity loan in full are permitted, as it will no longer be considered as Shared Equity

 

Submitting a case

For help on how to submit a case, please read our Shared Equity Guide.

 

Helpful links

HTB Scheme: https://www.helptobuy.gov.uk/

Target: https://www.myfirsthome.org.uk/

Find a RICS surveyor: https://www.rics.org/uk/