New scheme for Londoners

"MyChoiceHomeBuy" replaces the existing Open Market HomeBuy products and is available for some public sector key workers.

First-time buyers searching for a home on the open market will take out a regular mortgage from any participating bank or building society to buy a percentage of the purchase price. Eligible home buyers will then receive an equity share from MyChoiceHomeBuy to cover the remainder of the purchase price, this can be as much as 50 per cent of the total property value, or as little as 15 per cent.

MyChoiceHomeBuy has been designed to offer a flexible and simple path for potential home buyers in London with a household income ranging from £17,600 to £58,600 to buy their own home. A small fee of 1.75 per cent is payable on the equity bought with MyChoiceHomeBuy for the first year, annual increases on this fee are capped at RPI plus one percent to ensure that the monthly costs of owning a home bought with MyChoiceHomebuy are predictable and affordable.

Graeme Moran, Managing Director at MHO, said: "MyChoiceHomeBuy is a great new product, offering excellent affordability to low to middle income earners who might otherwise find themselves priced out the property market. It is a highly sustainable product for the customer, with a low fee and no hidden charges or nasty surprises for the customer. It gives customers more choice, offering a solution for affordable living to the thousands of people trapped in private rented or over-crowded family accomodation."

Home buyers can choose to buy part, or all the remaining equity on their property as soon it is becomes financially viable for them to do so after the first year. By paying back the equity at a price based on the valuation at that time, the monthly charge or fee that needs to be paid will be reduced proportionately.

Steve Nunn, Managing Director at Tower Homes, said: "With so many reservations about the current state of the housing market, the MyChoiceHomeBuy product delivers a much safer and more affordable solution for people looking to own their own property. We are confident that first-time buyers wanting to take that step on to the property ladder will find this an invaluable product."

On the development of the new product, Graeme Moran, Managing Director at MHO said: "We have tried and tested many products over the years, therefore MyChoiceHomeBuy has evolved out of years of experience. We are extremely excited to bring the product to the market, to enable first-time buyers to secure the home of their choice, at an affordable price, in a location suitable for them."
The government has prioitised the following groups for assistance under My Choice HomeBuy:

• Social rented tenants and housing association tenants
• Local residents prioritised on local authority housing waiting lists
• Public sector key workers
• Other priority first-time buyers recommended by the regional housing boards
Home buyers can apply for MyChoiceHomeBuy from the 1st of April 2008 by applying to Housing Options, the product will be offered for the three year period 2008-11 covered by the Government's Comprehensive Spending Review subject to available funds.

For further information you can visit the MHO website at www.mho.co.uk