Homebuy Carmarthenshire

Are you seeking to buy your own home but are unable to afford a home on the open market? The Homebuy Scheme could help make home ownership more affordable.

Carmarthenshire County Council, in partnership with Wales & West Housing, is delighted to offer the Welsh Government Homebuy Scheme. The scheme is designed to help applicants buy a suitable property on the open market they could otherwise not afford, as long eligibility criteria are met. The eligibility criteria are outlined below.

The scheme provides an equity loan to assist people who can obtain a mortgage and afford the repayments and all associated costs of buying a home, but may not have sufficient savings or income to buy a suitable home at full market value prices. By using the loan to reduce the amount that needs to be borrowed through a mortgage, Homebuy can help make home ownership more accessible.

Who is the scheme for?

The Homebuy Scheme is aimed at eligible households who wish to purchase a home in Carmarthenshire and are unable to meet their housing needs through the open market without assistance.

Applicants will need to meet the scheme's eligibility criteria and demonstrate that they can afford the ongoing costs of home ownership. The eligibility criteria and how you can apply can be seen towards the end of this page.

Key benefits

• Opportunity to purchase a home at below open market value.
• Support from a Welsh Government-backed scheme.
• Equity loan assistance to help bridge the affordability gap.
• An opportunity for eligible households to access home ownership.

How much of an equity loan can be secured?

Usually, the loan amount would be between 20-40% of the open market value of the home, with a mortgage needed for the remaining amount. In exceptional circumstances, e.g. in areas where home prices are higher, the loan amount could be as much as 50%

You would own the property outright, and retain all of the responsibilities and costs that come with home ownership. The Homebuy funding would be recorded as a Legal charge against the property, just like a mortgage.

When does the loan get paid back?

The loan would be paid back when the house is sold, or when circumstances change. No interest is accrued on the loan, but as it is a fixed percentage of the value of the home, if the value of your home increases, the amount of the loan increases. E.g. Home price £200,000 – loan amount 30% = £60,000. If the home value increases to £220,000, 30% would be £66,000.

The loan can also be paid back in stages at 10% increments – this is a process known as staircasing, and the loan can be paid back up to full home ownership if desired.

Eligibility criteria to qualify for Homebuy Wales include:

• You are currently not adequately housed or are wishing to move on from the private rental market
• You cannot afford to buy a home on the open market without help*;
• You must be able to get a mortgage and have means to cover a deposit, legal costs etc
• You must not be in rent arrears or be subject to action for tenancy breaches; and
• You must be able to demonstrate a strong local connection to the area**;
• You are wishing to move on from the private rental market; or
• You are currently living in a social rented home within Carmarthenshire and wish to move on to home ownership;
• You do not already own or have shares in another home, unless there are exceptional circumstances that prevent you purchasing a home to meet your needs on the open market ***;
• The home you are applying for will be your sole residence;
• You must be in employment (including self employed);
• You must be able to demonstrate that you can get a mortgage and have means to cover a deposit, legal costs etc. We don’t set limits on how much of the purchase price comes from a mortgage and how much from a deposit. Mortgage lenders will have minimum figures for a deposit.
• The combined gross household income should not exceed 25% of the open market value of the dwelling and applicants must demonstrate that they are unable to purchase a suitable home on the open market without assistance from the Homebuy Wales scheme*

 

NOTES:

*The applicant's financial circumstances must demonstrate that they are unable to purchase a suitable home on the open market without assistance. Household income, borrowing capacity, deposit availability and other affordability factors will be considered. Income exceeding 25% of the property's open market value may be accepted where an affordability assessment confirms that the purchase would otherwise be unaffordable.

**Strong local connections include people who currently live in the area, or those who are returning to an area (having previously lived there for a period of time) to be near to immediate family, e.g. parents, children, siblings or grandparents. The connection would also be relevant for people who have not lived in the area but need to move there to receive care or provide it to an immediate family member. A strong local connection would also be demonstrated by people who are employed full or part-time in the area or need to move there to take up employment.

***exceptional circumstances may include (but not limited to) relationship breakdown or overcrowding

 

How to Apply:

The scheme is administered in partnership with Wales & West Housing. If you feel you are eligible and would like to apply for the Homebuy scheme, you will need to call our Housing Options Team on 01554 899389, saying that you are applying for Homebuy. You will be provided with Log-in details which you can use to access Canfod Cartref Home - Homechoice and prepare your application.

You will need to ensure your application is up-to-date with details of your:

• Income;
• Savings;
• Local connection; and
• Family members who are moving with you, including whether you will be buying the home with someone else.

You will also need to provide a mortgage in principle offer for the home you would like to buy, from a bank or building society. This will indicate that they will give you a mortgage for the amount you need to buy the home, with Homebuy bridging the affordability gap.

If the eligibility criteria are met, and the application is successful, we will pass your details on to Wales & West Housing who will then check suitability and condition of the home and will administer the scheme from this point forward.

Interested applicants can find out more about eligibility requirements and the application process by contacting the Council: affordablehomes@carmarthenshire.gov.uk

More information regarding the Homebuy Wales scheme can be found in the Help to Buy - Wales Buyers' Guide