You buy your home by putting down a deposit and getting a Home Purchase Plan from StrideUp. The Home Purchase Plan is made of a Buyout Share and an Equity Share.
The Buyout Share is the part of the Home Purchase Plan that you will gradually buyout with the monthly payments.
The size of the Buyout Share will depend on the amount of deposit you put down. Your deposit plus the Buyout Share will equal 80% - so using the example shown in the picture below, if you put down 10%, the Buyout Share will be 70%.
For the Buyout Share StrideUp do not share in any loss on the property - so you'll have to purchase this from us based on the day-1 property price.
The Equity Share is the part of the Home Purchase Plan that will remain outstanding unless you make additional payments (i.e. payments above the required monthly payment). These additional payments can be one-offs, or set up as a regular contribution.
The Equity Share will be 20% of the property price. For example, if you buy a £250,000 property, the Equity Share will be £50,000. It does not depend on the amount of deposit you put down.
The Equity Share protects you against losses in the value of your home. If you have to sell the property and the market has fallen, StrideUp will share in the loss on the Equity Share. However, if you're refinancing or buying it from us, this will be at the day-1 price.
Your home may be repossessed if you do not keep up the payments on your home purchase plan.