Currently, we offer two affordable housing products: Shared Ownership and Shared Equity.
Shared Equity helps buyers purchase a new build property by providing a loan of up to 20% of the value of the home. This means you’ll only need a 5% deposit and a 75% mortgage to make up the rest.
In practice, if you were buying a home worth £300,000 through Shared Equity, your purchase would look like this:
- £60,000 loan from Notting Hill
- £15,000 deposit put down by you
- £225,000 mortgage from a mortgage lender
The Loan is interest-free for 5 years. After that, you’ll pay an annual fee of 1.75% on the amount of the outstanding loan. The fee increases each year by inflation (Retail Price Index (RPI) + 1%).
You can start repaying the loan after you’ve owned the home for a year, but you’ll need to pay a minimum of 10% of the property value at the time of repayment, which will be decided by an independent RICS accredited valuation.
When you sell your home, you’ll need to repay the percentage equity loan that is still outstanding. So, for example, if you originally bought 80% of the property and hadn’t repaid any of the loan, your repayment on selling would be 20% of the market value at that time.
This means that if you take a 20% equity loan of £60,000 to buy a property worth £300,000 and when you sell the property it's worth £350,000; you would repay £70,000 - 20% of the new value of your home, not the amount you originally borrowed.