What is New Build Shared Equity?

This is a new government initiative announced in May 2008 that allows you to purchase a brand new home through a developer with a  MyChoiceHomeBuy shared equity loan. MyChoiceHomeBuy offers a shared equity loan of between 15% to 50% of the purchase price. This can be used in conjunction with a conventional mortgage from a range of qualifying lenders. A low monthly interest charge of 1.75% is payable on the equity loan. This rises in line with inflation each year.

Who is eligible for New Build Shared Equity?
Like all HomeBuy products, New Build Shared Equity is designed to help people who cannot afford to buy a property that suits their household needs without assistance.

First time buyers earning between £20,000 and £60,000 per annum (single or joint) could be eligible for NBSE, provided they cannot afford to buy a property to suit their basic household needs on the open market.  The scheme is demand-led, based on affordability, but social tenants and public sector key workers who apply are given priority.

We can also help you if you have previously owned a property but are now unable to buy without assistance, for example if you are coming through a relationship breakdown, or if your family is over-crowded in your existing home.

Savings of £3,500 are required to cover the initial costs of purchase. There is additional criteria, for example, levels of debts/loans, etc.

Can I buy any type of property?
Under NBSE, most new build apartments and houses will be acceptable. You can buy a property with one bedroom in addition to your basic household needs. For example, a single person, or a couple with no children can purchase a one or two bedroom property. A couple with one child can purchase a two or three bedroom property.

How do I apply for New Build Shared Equity?

To apply for NBSE click here

An online application form facilitates a swift process. You will receive a response from us within eight working days from the day your application is submitted.

Please include the following on your application form:

• the name of the new build development where you wish to purchase a new build property and the name of the developer
• the words “New Build Shared Equity”

Please do not pay the developer any reservation fee (unless this is refundable) until you hear back from us, in writing, with clear instructions at the point when you can pay the reservation fee and commence the sale process.  Our letter will confirm the maximum purchase price and the amount of the shared equity loan that apply to you.

Which developers are offering New Build Shared Equity?

This is a client based product and is not linked to individual new build developments. We recommend you look through the adverts in local newspapers in the area where you need to live, or search through property websites such as www.rightmove.co.uk.

Click HERE for Moat’s New Build Shared Equity information sheet.

Your home is at risk if you do not keep up rent and mortgage repayments or payments on other loans secured on it.
Please note the value of properties can go down as well as up.