News
Catalyst enables first family in UK to benefit from MyChoice HomeBuy
9th June 2008
HomeBuy Agent, Catalyst Housing Group, has enabled the first family in the country to benefit from the new Government-funded MyChoice HomeBuy (MCHB) shared equity scheme. First-time buyers Mrs Doral Hayes and Mr Declan Flynn from Wooburn Green in Buckinghamshire recently exchanged contracts on a three bedroom house, despite their concerns about being priced out of the local housing market.
The MyChoice HomeBuy scheme offers eligible first-time buyers up to 50% of the cost of their home as an equity loan, with the balance funded through a conventional mortgage lender. No deposit is required, although it is allowed. Under MyChoice HomeBuy, buyers pay a low rate of 1.75% per annum on the equity loan funded by Catalyst Housing Group.
Thanks to MyChoice HomeBuy, the couple – who have a young daughter – could afford to buy their home with monthly mortgage payments that are almost exactly the same as the cost of renting.
Doral Hayes explains: “Although we were renting a nice home in a lovely area, we didn’t want to be still be paying rent when we were 60. We wanted to stay in the local community but really couldn’t afford to buy anything suitable – and saving for a deposit is really difficult when you’re paying rent. When I saw an advert for the HomeBuy scheme I thought it was too good to be true. But I checked it out, and realised that it was a great deal, with Government backing. It’s made a huge difference to us, and we can’t wait to be settled into our new home – the home that our family will grow up in.”
In the current difficult housing market, MyChoice HomeBuy has proved to be a particularly attractive option. “Going through the scheme with Catalyst meant that when we came to arrange a mortgage our financial position had already been carefully vetted,” explained Doral Hayes. “This, alongside Catalyst’s equity loan, provided the lender with reassurance that we were a safe bet. As a result we had no problem at all arranging a mortgage.”
Housing and Planning Minister Caroline Flint said: “It’s great to see Doral and Declan get a foot on the housing ladder. Without this support they simply wouldn’t have achieved the dream of owning their own home. I know how hard it is for some people to buy a home which is why we recently opened up our HomeBuy schemes to all first-time buyers. We want to see many more young families getting an affordable step on the property ladder.”
Rod Cahill, Group Chief Executive of Catalyst Housing Group added “MyChoice HomeBuy makes home ownership a reality for many first-time buyers. We are delighted to help Doral and Declan become the first people in the UK to take advantage of this excellent equity loan scheme. As the HomeBuy Agent for Buckinghamshire, Oxfordshire and Berkshire we look forward to helping hundreds of other first time buyers through our range of home ownership schemes.”
© Catalyst Housing Group 2008