You buy your home by putting down a deposit and getting a Home Purchase Plan from StrideUp.
Like homes, our Home Purchase Plans come in different shapes and sizes to suit your needs. On our IncomeMax product, you can split your Home Purchase Plan into a Buyout Share and an Equity Share, or just a Buyout Share. This may be useful to maximise your buying power. Your adviser will help you choose which is best for you.
Buyout 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 and the product you choose and what is important to you.
Where you choose to not have an Equity Share, your deposit plus the Buyout Share will equal 100% of the property
Where you choose to have an Equity Share, your deposit plus the Buyout Share will equal 80% of the property - so using the example shown in the picture below, if you put down a 15% deposit, the Buyout Share will be 65%.
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.
Equity Share
Where applicable, 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 at the end of the Plan - if you sell the property and the market has fallen, StrideUp will share in any loss on the Equity Share.
If you're refinancing elsewhere or buying the remaining shares from us through another route, the cost will be based on the day-1 price.
Your home may be repossessed if you do not keep up the payments on your Home Purchase Plan.