Open Market Homebuy overview
- Introduction to Open Market Homebuy
- Open Market Homebuy overview
- How does the OMHB Scheme work?
- The OMHB product
- How to Apply
- Q&A`s
This product is part of a Government initiative to help certain groups of people including key workers (nurses, police, teachers etc.) and council house tenants afford their own homes.
The Government Initiative encompasses 3 different types of schemes, but all are entitled HomeBuy. The other two schemes that Halifax supports are Social HomeBuy and New Build HomeBuy - full details can be found under the Affordable Housing Scheme section.
This section refers to the processing of the Open Market HomeBuy scheme only.
Open Market HomeBuy will enable people to buy a property on the open market with the help of an equity loan. The Government is lending those eligible 12.5% of the value of the property on an interest free, payment free basis (which will be paid back, plus a share of any increase in the value of the property, when the property is sold).
The scheme is only available through the intermediary channel. A HomeBuy Agent (usually a Housing Association) has to approve the applicants eligibility for the scheme and the intermediary then refers the application to a participating lender (there are three other lenders taking part in the scheme).
As we are piloting our involvement in the Open Market HomeBuy scheme applications are not available online. All forms and information about how to apply can be found on the Halifax Intermediary website.
To support this pilot a specialist team has been set up to deal with all queries relating to OMHB. Under no circumstances should Open Market HomeBuy accounts be administered outside the Open Market HomeBuy team. Any intermediaries enquiring about this product should be directed to their Business Development Manager for further information, alternatively details are available on the website www.halifax-intermediaries.co.uk.
Halifax is offering a product which will lend the customer the remaining 87.5% of the value. 75% will be on a capital and interest tracker product (which represents the borrowers equity share) and 12.5% will be interest only and interest free for five years, then on a fixed rate of 3% for the remaining term (representing Halifax's equity share). Halifax will also have a share in any increase in the value of the property.
- Any enquiries pre-completion should be directed to the Open Market HomeBuy Team on 0845 888 8881.
As the total amount repayable to Halifax will be more than the amount outstanding on the borrowers mortgage account, all queries on these mortgages post completion, especially requests for amount owing figures, should be referred to the specialist team in Halifax:
- $HO MCS OMHB or call 0845 124 1323.
Any customer enquiries about further advances, TOMPs or product transfers should also be referred to this team.
To identify the Government element of the loan a second charge will be registered by the conveyancer and show on an SCG enquiry. In addition, a shared ownership code of 0591 will be held on the account but this code is for the sole use of Open Market HomeBuy mortgages and must not be used in conjunction with any other scheme.
The SCG enquiry will also hold details of a charge in favour of the Halifax to highlight the fact that there is an additional sum repayable on redemption due to the equity share.
