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Understanding and introducing equity loans

The government’s affordable homeownership products offer New Build HomeBuy and shared equity, which provides a 20% equity loan. The loan must be held by the housing association. This will be a new area of regulation and understanding for many associations but these loans can also be offered by associations, developers and local authorities to bring schemes forward and improve viability.

Equity loans are becoming increasingly popular to support homeownership and local authorities, developers and housing associations. The Help to Buy loans offered by the government on new build property work on the same legal mechanism. Many products are underpinned by this legal structure which is quite different from shared ownership and very popular with many target markets. Equity loans have been used by local authorities for renewal since 2002, but more recently have found their way into homeownership products. They are relatively simple to understand, but need to be established within a strict regulatory environment.

This course provides a detailed explanation of how equity loans work and supports delegates to establish these products. It focuses on:

  • What equity loans are used for
  • How to establish them
  • Creating policy criteria
  • First and second charge regulation
  • In-house v outsourcing the loan provider
  • Regulation and ensuring compliance.

It considers the government’s shared equity product but also focuses on other products that use equity loans such as deposit products, mortgage rescue, rent to purchase and how equity loans can bring empty homes back into use. It considers the flexible uses of loans and the benefits of using them.

Who should attend?

The course will be invaluable to people who understand products but want to become experts:

  • Housing associations looking to hold equity charges for the first time
  • Sales teams looking to better understand loan products
  • Development staff of housing associations considering new products for schemes and looking to offer added value in competitions for local authorities
  • Planning officers negotiating with developers for new schemes: to understand the products being offered and to negotiate alternative deals.
  • Developers trying to introduce new products for schemes.

Our trainer

Helen Brzozowski has worked in the social housing sector for 14 years. She has been a consultant and trainer for six years and is a director of arc4. Her expertise lies in the development of products and options to support households to access and move into the tenure of their choice. Her work involves developing new products and evaluating their success, including equity purchase models, rent to purchase models and intermediate rented products. She assists housing associations, local authorities and developers to develop delivery mechanisms and models to create viable schemes and introduce a range and mix of tenures to meet local needs.

HQN has a track record of helping organisations achieve real and lasting performance improvements. If you are interested in accessing this training package please contact us by emailing training@hqnetwork.co.uk

To download the product leaflet for this topic, click here