Tue 29 Jul 2008
Miller Homes – Cambridgeshire
Miller Homes is launching a new scheme offering customers the chance to pay “75% now, 25% later” on many houses in its portfolio including homes at St Neots in Loves Farm, Cambridgeshire.Under the scheme, branded MiWay by the developers, buyers will still own 100% of their property. It is not a traditional shared-ownership scheme; instead it offers two major advantages to would-be homemovers worried about the credit squeeze.
Miller Homes believes that buyers interested in MiWay will be more likely to find themselves in a much stronger position when applying for finance. With Miller Homes effectively putting down a 25% deposit on the new home, buyers will be eligible for 75% mortgage schemes which generally come with more competitive rates.
The developer is also offering to share some of the risk of any potential fall in house prices. When the loan term is up, after ten years - or earlier if the buyer chooses to sell before the end of the term-the amount repayable will depend on the open market valuation of the property at that time.
If the property has gone up, buyers must pay 25% of the increased value. Conversely, if the property has gone down in value, buyers will only have to pay 25% of the decreased value.
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