How the Scheme works
There are six phases in the application process:
Phase 1 – Local Connections Assessment
Applicants will need to demonstrate that they have a local connection by completing the Local Connections online assessment form.
This is a pilot scheme with limited funding availability; only 5 applicants will advance to the next stage. Should a large number of applicants be received, that score highly against the local connection criteria, the Council will determine the priority of applicants on a first come first served basis.
Phase 2 – Financial Checks
Applicants advancing to stage 2 will be contacted by Broker One77 Mortgages, who will carry out initial credit and affordability checks.
One 77 Mortgages are a completely independent, fees free mortgage and insurance broker covering the whole of the UK. We specialise in the self-build sector and will be delighted to assist with your new project at Graven Hill.
Phase 3 – Graven Hill Village Development Company Ltd
Alongside phase 2, applicants will also be contacted by Graven Hill Village Development Company to identify a suitable plot from their mix and match product which will be launched in July 2018. The applicant will work with Graven Hill to explore the mix and match options available and an off plan valuation will be agreed. At this point a reservation fee of £500 will be collected.
Applicants at this point will need to identify a solicitor and pass these details to Graven Hill.
Phase 4 – Mortgage application
The Broker will then refer applicants to a panel of lenders. Please note that the maximum mortgage is £450,000 for this scheme. Applicants will then apply to a lender for a 95% loan to value mortgage that we will indemnify up to 20 per cent. Successful applicants will be offered a firm mortgage offer by the Lender.
Phase 5 – Build Process
The applicant then exchanges contracts with Graven Hill, this contract sets out the key responsibilities and contractual arrangements of the scheme. At this point, the applicant will also pay Graven Hill a 5% non-refundable deposit (less the reservation fee) and provides evidence of the firm mortgage offer.
The majority of mortgage offers are valid for a period of six months, after this point you will need to arrange an extension with the lender. Due to the relationships that have been developed for the Graven Hill site this should not pose a problem, however the extension is not a guarantee and is subject to your financial position not changing for the worst. An example would be taking on a new credit commitment such as car finance in the interim.
Regular reviews will be undertaken by Graven Hill with the applicant during this process.
Phase 6 – Mortgage Advance
At this stage the lender values the property in line with the off plan valuation. The lender will then advance the 95% mortgage to the applicant’s solicitor and the pre-approved 95% loan to value mortgage is complete.
Ownership of the land and property transfers to the applicant, who is now the new owner.
The 95% loan to value mortgage is supported by an up to 20% indemnity from Cherwell District Council. This indemnity will remain in place for 5 years with the (up to) 20% indemnity and this may be extended for a further 2 years if the mortgage is in arrears in the last 6 months of the initial 5 year period.