Shared Equity
Open Market Homebuy - GLO (Government Loan Only) - England ONLY
This scheme 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. It enables people to buy a property on the open market with the help of an equity loan provided by the Government.
The Government will typically lend (subject to eligibility) up to 17.5% of the value of the property to assist the purchase; your client will secure the remaining equity share. The Government's equity share will be secured by way of a second charge and will be in the form of an interest free, payment free loan repayable when the property is sold, together with a share of any increase in the value of the property.
A HomeBuy Agent (usually a Housing Association) will approve the applicant's eligibility for the scheme and you can then proceed with the mortgage application - applications can be processed in line with existing Shared Equity scheme procedures.
For further information on processing OMHB-GLO applications or any other Shared Equity schemes please contact your local processing centre.
