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Financial Services > Mortgages > Home Ownership Plan > Home Ownership Plans Q & A

Home Ownership Plans Q & A

Read the mortgagecase.com guide to Home Ownership Plans >>

Are HOPs portable?

This is the first concern in the mind of many buyers, particularly first-time buyers. HOPS, both the mortgage and ROL components, are completely portable from one house to another, but both components must be redeemed simultaneously and lending on another property must be within the lending criteria.

Is it possible to repay part of all of the ROL without moving house?

Absolutely. A valuation of the property must be paid for by the borrower, and the minimum lump sum of ROL repayment is £5,000.

What happens if there is a housing market crash?

If the bottom drops out of the property market, the repayment on the ROL is determined by the level of equity share is represented at the outset of the loan. This is fixed regardless of movements in property value. The mortgage, on the other hand, is always repayable and could, in a worst case scenario, lead to negative equity.

Can I overpay my home ownership plan?

Overpayments can count towards the mortgage, but the ROL cannot be paid off without a current valuation.

Can I use a HOP for ‘buy to let’?

Not currently.

What are the advantages of a HOP over Housing Association shared ownership and shared equity?

Usually, housing association schemes are only available on strictly designated properties. They also have waiting lists. Home improvements are not allowed, or restricted, and there are other restrictions on the sale of the property. For many borrowers, HOPs offer a flexible alternative.

Do high LTV HOP mortgages attract higher lending charges or Mortgage Indemnity Guarantees?

No, they do not.

Please click here for the mortgagecase.com guide to Home Ownership Plans >>

Who might a home ownership plan suit? >>

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