First Step, Next Step
Helping you
raise the
deposit to buy
your home
What is ‘First Step, Next Step’ West Berkshire?
‘First Step, Next Step’ is an Equity Loan Scheme run by West Berkshire
Council in partnership with Newbury Building Society. It offers an equity
loan to help local people who want to buy their own home but do not
have sufficient financial resources available.
The equity loan is secured by way of 2nd charge against the property
and the loan is subject to a 10 year repayment period.
The equity loan means the funding is secured as a percentage of the
value of your home. For example, if the loan was £10,000 and the
property cost £100,000, this would be a 10% equity stake.
You would not be required to pay interest on the loan, however you
would be liable to repay the percentage equity stake if you were to sell
your home or after 10 years (whichever is sooner).
The amount to be repaid is calculated on the price of the home at the
point of sale or a valuation if the home is not being sold but the 10-year
repayment period has expired.
For example, if the value of the home had increased to £120,000, and
the original equity stake was 10%, you would need to repay £12,000.
The maximum loan available is £30,000 and the loan can be used
to top up your deposit or to bridge the gap between your maximum
mortgage offer and the property purchase price.
Who is eligible for ‘First Step, Next Step’?
You may be eligible if:

You are a first time buyer and do not own or have an interest
in any other property

You live or work (minimum of 16 hours per week) in
West Berkshire

You have a minimum household income of £20,000 and a
maximum of £60,000

You have a minimum 5% deposit

You are eligible for a Newbury Building Society mortgage.
If you already own a property you may also be eligible for ‘First Step,
Next Step’ in certain circumstances. Whilst you would not need to be
registered on the Council’s Common Housing Register, you would
need to have a housing-related issue that would qualify you for rehousing under the current Housing Allocations Policy. This might be,
for example, overcrowding, or the need to move because your home
is no longer suitable for your household’s needs. The home you are
purchasing through the scheme must be your only and principle home.
Are there any other conditions?
Yes.These conditions are set to ensure that the scheme is suitable for
you and affordable in the longer term as your home may be at risk if
you were unable to keep up with the repayments of your mortgage.

Applicants must have a good credit history.

The mortgage loan must not exceed 4 times annual
household income

The total of any outstanding debts must not exceed more than
half your annual household income

Monthly credit card bills and other financial commitments will be
assessed during the application process
Are there any other costs involved?
Buying a property is expensive and feedback from purchasers confirms
that an amount of £4,500 to cover the one-off costs is realistic. To
proceed with your application, you will need to have access to at least
£4,500, either through savings or from family/friends, without the need
to borrow extra money on your mortgage or to take out a personal loan.
This is in addition to your deposit.
Is there a maximum purchase price?
Yes. The maximum purchase price of the property purchased through
the “First Step, Next Step” scheme must not exceed:

£215,000 for a 1 bed property

£275,000 for a 2 bed property

£300,000 for a 3 bed property
How many bedrooms am I entitled to?
The property you choose to buy under this scheme must meet the needs
of your household. For example, if you are a couple with no children you
will only be eligible to apply for a one bedroom property and a couple with
one child would be eligible to apply for a property with two bedrooms.
However, If the First Step, Next Step Loan you require is for less than 5%
equity you may be eligible for an additional bedroom.
Is it a study or a bedroom?
If a room is described as a study by the estate agent, but later deemed to
be a bedroom by the surveyor, it will be considered to be a bedroom.
What type of property can I buy with ‘First Step,
Next Step’?
The property may be newly built or an older property, a flat or a house,
but must be within West Berkshire. If the property is a new-build, it must
be ready and available for occupation. We cannot offer a ‘First Step Next
Step’ equity loan for any properties that are not completed and ready for
occupation.
The property must be for sale with vacant possession.
The property must be purely for residential use.
Leasehold properties must have an un-expired term of at least 85 years.
‘First Step, Next Step’ is available for shared ownership properties
Is there any type of property I cannot buy with ‘First
Step, Next Step’?
Yes, the following properties will not be considered for ‘First Step,
Next Step’

Studio flats

Buy-to-let properties

Commercial property

Property for sale at auction

Mobile homes, including boats

Plot of land or self build scheme

Property owned or part-owned by you or your partner or a
member of your family


Properties in poor condition
Properties offered to you at a discount under other publicly
funded schemes.
Newbury Building Society may apply other restrictions to the home that
you may purchase.
You have confirmed that I am eligible, am I
guaranteed acceptance on the scheme?
Unfortunately not, we will confirm that you are eligible when you first
apply, but acceptance of your application and a formal offer of funding
will not be made until you have found a property to buy and you have
received a mortgage offer from Newbury Building Society. At this stage,
an offer of funding will be made under ‘First Step, Next Step’ which
will be valid for three to six months from the date of Newbury Building
Society’s mortgage offer, unless we agree an extension. Any offer under
‘First Step, Next Step’ is subject to the availability of funding for the
scheme.
Can I lease the property to a third party?
The property that you purchase must be your sole and principle home
and you cannot use the property for commercial gain whilst you are
benefiting from the ‘First Step, Next Step’ equity loan. If you wish to let
your property, you will need to repay the ‘First Step, Next Step’ loan.
What happens if I want to re-mortgage before
the 10 years expires?
If you have purchased through ‘First Step, Next Step’ and you wish to
re-mortgage prior to the 10 year expiry date, you can re-mortgage up
to the same loan to value (LTV) without repayment of the equity loan.
If you wish to re-mortgage above the same loan to value (LTV) the loan
becomes repayable.
What happens if I want to sell my home and move,
after I have purchased through ‘First Step, Next Step?
You market your home for sale in the normal way. The equity loan is not
portable and must be repaid at the point of sale. You are responsible for
all costs associated with the sale of your home.
When I sell my home purchased through ‘First Step,
Next Step’, how much do I have to pay back?
The equity loan that you receive through the ‘First Step, Next Step’
initiative represents a percentage of the purchase value of your property.
When you sell the property you will repay the same percentage based on
the property’s value at the time of sale. As the owner of the property you
will also be required to pay for the valuation survey to be conducted by an
appropriately qualified individual. The amount you will need to repay will
not necessarily be the same as the loan you were given. Whilst it could
stay the same, it may go down, or more likely, will go up.
Who gets priority under the scheme?
If the scheme is over-subscribed, priority will firstly be given to applicants
who live in social rented accommodation (i.e. are Housing Association
tenants).
How do I apply?
If you meet the eligibility criteria you can apply by completing the First
Step, Next Step West Berkshire application form. This form can be
completed online at www.westberks.gov.uk/equityloan
On receipt of your fully completed application, you will be contacted within
10 working days.
Who do I contact if I have any questions?
If you have any questions or would like more information about specific
aspects of the scheme, please contact the Council’s Housing Strategy
Team on 01635 519629.
Contact information
Newbury Building Society
105B Northbrook Street
Newbury
Berkshire
RG14 1AA
01635 522588
4 High Street
Thatcham
Berkshire
RG19 3JD
01635 864996
127 High Street
Hungerford
Berkshire
RG17 0DL
01488 684705
West Berkshire Council
Housing Strategy Team
West Street House
West Street
Newbury
Berkshire
RG14 1BD
01635 519629
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP
REPAYMENTS ON YOUR MORTGAGE.
Limited availability - may be withdrawn without notice.
Newbury Building Society is authorised by the Prudential Regulation Authority and regulated
by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services
Register number 206077). 3948/Feb16
www.westberks.gov.uk WBC/HST/CD/0116