1.1 This offer is only available on selected plots and developments. The maximum property value for FirstBuy is £280,000 and on an exceptional basis, depending on location, a purchase price of up to £300,000 will be considered.

1.2 This scheme is only available where the total income of the purchaser’s household does not exceed £60,000 per annum.

1.3 Purchasers will be required to raise funding (including a mortgage and any deposit,) of not less than 80% of the property purchase price (excluding any mortgage fees). The property will be subject to a first charge in favour of the mortgage company. 

1.4 For the purposes of the purchaser’s first mortgage a valuation of the property will be carried out by an independent valuer based on the market value.

1.5 A HomeBuy Agent (Government appointed housing association) will carry out an eligibility check to ensure that the purchaser satisfies the Homes and Community Agency’s (“HCA”) eligibility criteria for the FirstBuy scheme and to check on the purchaser to establish the purchaser’s ability to afford and sustain home ownership. The HomeBuy Agents will consider 45% as the maximum percentage housing costs should be as a proportion of net available income in order to indicate the purchaser’s ability to repay the loans.

1.6 If the purchaser’s eligibility is confirmed and the timeframes and procedures set out in the Solicitors Pack supplied to the purchaser’s legal advisers as part of the conveyancing process are complied with, BDW Trading Limited (“BDW”) and the HCA will each provide equal equity loans to the purchaser of not less than 5% and not more than 10% of the purchase price subject to the terms of the equity loan agreements. Based on the maximum purchase price of £300,000, BDW and the HCA will therefore provide equity loans of up to £30,000 each.

1.7 The equity loans provided by the HCA and BDW will be secured by second and third charges (respectively) on the property ranking equally (by virtue of a deed of priority a copy of which will be supplied to the purchaser’s legal advisors as part of the conveyancing process) behind the first charge referred to in paragraph 1.3.

1.8 The equity loans provided by BDW and the HCA will be interest free for the first 5 years. From the beginning of year 6, interest will be payable by the purchaser at an annual gross rate of 1.75%, rising at  the Retail Prices Index published by the Office for National Statistics plus 1% per year thereafter.

1.9 The equity loans must be repaid within 25 years of legal completion of the purchase of the property whether the property is sold or not. 

1.10 If the purchaser sells the property, repays the mortgage on the property without taking out an alternative mortgage, is insolvent or defaults under the equity loans agreements, the equity loans must be repaid in full at that time.

1.11 The equity loans will be repayable on the basis of the greater of the price of the property or its market value at the time of future sale or mortgage repayment as opposed to the original purchase price but disregarding additions or improvements made to the property by the purchaser with the consent of BDW and the HCA. This means that if the property increases or decreases in value, the purchaser will pay BDW and the HCA the same percentage of the new price of the property as the percentage the equity loans were of the original price.  This may result in BDW and the HCA being paid more or less than the original loan value.

1.12 If, on the sale of the property, the price of the property has fallen and there is insufficient money from the sale to repay the equity loans after the mortgage has been paid the purchaser will lose any deposit paid. BDW and the HCA will not however seek to recover the balance of their equity, not otherwise paid out of the proceeds of sale, from the purchaser.

 

1.13 The purchaser may repay the equity loans to BDW and the HCA at any time following legal completion. Repayment whether in full or by instalments will be based on the market value of the property at the time of the repayment(s) and the purchaser will have to arrange and pay for the valuation of the property at that time. The minimum instalment value is 10% of the total of the equity loans. The minimum instalment must be repaid to each of BDW and the HCA at the same time.

1.14 Detailed terms and conditions apply to each of the equity loans which will be made available to the purchaser via their legal advisors as part of the conveyancing process.

1.15 Mortgage lender's criteria may affect any deposit percentage and whether it applies before or after the equity loan is deducted from the purchase price.

An example of how FirstBuy works is as follows:
Purchase price £120,000
Mortgage £91,200 (76%)
Deposit £4,800 (5% after loan applied i.e. 4% of purchase price)
Equity loan £24,000 (20%) (BDW £12,000/10% and HCA £12,000/10%)

For the first five years the equity loan is interest free. After 5 years an annual fee of 1.75% of the outstanding balance of the Equity loan is charged. This will be increased annually by RPI +1%.


Sale after 5 years.
Open market value £150,000 (a 25% uplift in value).
Mortgage repayment (assuming no repayment of capital) £91,200.
Equity loan 20% of the open market value split equally between BDW and the HCA = £30,000 (£15,000 each)
Remainder available to purchaser £28,800

APR Equivalent
To give you an example of the equivalent APR the formula which illustrates the increase in the sum repayable on the sale of the property as an annual effective rate is as follows:

100 1/T

Where:
R is the amount of the repayment on the sale of the property
P is the amount of the credit advanced under the agreement; and
T is the period beginning with the relevant date and ending with the date of repayment, expressed in years
As a guide to help you work out the equivalent APR assume a loan of £10,000 (P) is advanced and that the amount repayable after 7 years (T) is £15,000 ( R ) (the value of the property having been assumed to increase by approximately 6% per year)
The APR equivalent is  100  15,000 1/7 
   10,000  -1

   = 100 [(1.5) 0.14286 -1]
   = 100[1.05963-1]
The APR equivalent is therefore 5.96.

Ward Homes General Terms & Conditions

Any promoted Ward offer is subject to contract and status. Offers are on selected plots only and are subject to availability. The offers advertised cannot be used in conjunction with any other offer on the same plot unless expressly stated otherwise. Prices and details are correct at time of going to press. All images are typical of Ward homes and are for illustrative purposes only. Please contact the development in which you are interested for further details.

Ward reserve the right to withdraw or alter any of these offers at any time prior to the payment of a reservation fee. Contracts must be exchanged within 28 days of reservation of your property. Failure to do so may result in the loss of all or part of your reservation fee.

The current specific offers being advertised in relation to selected Ward developments are also subject to the specific terms and conditions set out above (N.B. these offers may vary from time to time and you should refer to the development in which you are interested to discover which offers are available on specific plots and developments).

Ward will not be liable for the refusal of a mortgage based on the borrower’s individual circumstances which leads to the loss of any reservation fee. Ward will not be responsible for the failure of any deal due to any defects in your existing property which arise as a result of an inspection or survey, whether a part exchange deal has been agreed or not

These terms and conditions do not affect your statutory rights.

Ward Homes is trading names of BDW Trading Limited (Registered Number  03018173) which is a subsidiary of Barratt Developments Plc (Registered Number: 00604574) both with registered offices at Barratt House, Cartwright Way, Forest Business Park, Bardon Hill, Coalville, Leicester, LE67 1UF.

You are strongly advised to obtain financial advice from a New Homes Mortgage Adviser in respect of any mortgage product required. Ward Homes maintain a list of New Homes Mortgage Advisers who  we recommend as having extensive knowledge of  our offers and products and the associated mortgage requirements, though you may seek such advice from your own New Homes Mortgage Adviser if preferred.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE