NewShare – our shared equity scheme
If you would like to own your own home but can’t afford a large deposit or the cost of buying a home on the open market, our NewShare scheme could help you.
We are selling about 1,200 homes in Newham under this scheme. These homes are a mix of new build and existing homes. Find out more by emailing NewShare.
You buy your home using a deposit and a mortgage with an equity loan from us. It is 100 per cent ownership.
You will have to fund between 50 per cent and 70 per cent of the cost of your home from a deposit and mortgage. An equity loan from us will make up the difference. The type of property you want to buy will decide what percentage of the cost you will have to fund from a mortgage and deposit.
Equity loan fee
When you buy your home, you will pay a yearly fee of 1.75 per cent on our equity loan. This increases annually in line with the Retail Price Index plus one percentage point. Your fee will reduce as you pay off the loan.
Paying back the loan
When you can afford to, you can buy out our equity loan in full or in stages, but you must pay it back in full within 25 years. How much you pay is based on the market value of your home at the time you are paying back the loan.
For example, if the value of the home you bought was £200,000 at the time you bought it and you were helped with an equity loan of £50,000 then the loan is for 25 per cent of the value of your home.
If you want to reduce the loan to 15 per cent you would have to pay an amount that is equal to 10 per cent of your home’s value at the time you are paying, not its value when you bought it. So, if the value of your home has increased to £250,000, you will have to pay us £25,000.