Helping customers get HomeBuy loans

28 June 2010

The HomeBuy Direct scheme is designed to help people buy new-build properties by providing them with low interest loans to use as deposits.

A common misconception about HomeBuy Direct is that you have to be appointed to a HomeBuy agent’s panel to be able advise clients wanting to use the scheme.

You don’t. Any broker can advise a client wanting to apply via the scheme and this misconception has arisen because of the process applicants have to follow.

When an individual submits an application the HomeBuy agent requires an assessment of their financial circumstances by an approved adviser. Agents usually have a panel for this.

But once the financial assessment is done the applicant does not have to return to that adviser to source a mortgage - they can go to a broker of their choice.

This means there is a chance for all brokers to investigate HomeBuy Direct as a source of business.

So it’s worth knowing which developers are participating in the scheme. The Homes and Communities Agency has published details of the second round of funding for its Kickstart programme that will support the building of 5,696 homes.

Developers taking part include Redrow, Persimmon, Morris, Barratt, Crest Nicholson, Miller and JS Bloor.

It’s worth visiting their websites to find out where their developments are as there may be a business opportunity for you.

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