subject: What Is A Key Worker Mortgage Scheme? [print this page] In 2004, a program was launched by the British government to assist hard-working public sector employees obtain affordable housing near where they work. Due to rapidly increasing home prices, many of these public servants found themselves priced out of the market, requiring either unacceptably long commutes or job relocation to less expensive areas. Central to this arrangement is the key worker mortgage scheme.
There are several key worker schemes available at the present time. These include the HomeBuy Direct program, which will loan money toward your home with no fees being charged for five years, and the shared ownership program, in which you purchase a share of your home and pay rent on the remaining portion. A shared ownership loan is also available, in which you may buy part of a property (anywhere between 25% and 75%) and rent the remaining space.
In order to qualify, at least one member of the household must be employed in a key worker position and their place of employment must be somewhere in London, the South East, or East Anglia. There is also a maximum income limit to qualify for many of the programs and higher paid professionals, like doctors and dentists, are excluded from participation.
In many instances, this may be your only opportunity to afford housing near your place of employment and, if you qualify, you would be well advised to look into how the program might benefit you. One thing to keep in mind, however, is that if you voluntarily change your employment, you may cease to qualify as a key worker. In this case, the loan will need to be paid back. If you are involuntarily let go or lose your job because of sickness, the repayment need not happen until the property is sold.
If you have no intention of switching jobs and are secure in your occupation and place of employment, a key worker mortgage scheme may be a golden opportunity for you to own your own home. Such lending instruments can be somewhat complicated, however, so the best course of action if you feel you qualify is to discuss your particular situation with a bank or mortgage broker.
by: Neil Stevenson
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