Repayment of loan The maximum amount we can lend is 50% of the purchase price of the property. The minimum amount is 25%.

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1 RE: FUNDING FOR HOMEBUY SCHEME We are pleased to inform you that we have some funding to assist applicants to purchase a property of their own choice on the open market through the Conwy County Borough Council funded Homebuy scheme. Whilst the scheme is primarily for first time buyers, we will consider applicants who are homeowners, and who wish to repurchase; following a relationship breakdown. Need to move to a cheaper property due to having difficulty meeting mortgage repayments Need to move to a larger property due to an increase in family size, but cannot afford a higher mortgage and/or have sufficient equity in current property to move on. Need to move to a more suitable property, due to a member of the household having a disability where the current accommodation cannot be adapted to meet the household s needs. Applicants will be considered in date order registered on Conwy County First Steps Affordable Home Ownership Register, but Priority is given to applicants who are: local authority or housing association tenants member of the household has a disability, and the current accommodation is not suitable and cannot be adapted to meet the individual s needs. Will require occupational therapist letter to confirm current property not suitable. Armed Forces personnel Applicants that with to purchase in Colwyn Bay, and who have a local connection to the Colwyn Bay community. Please note that funding is limited, and will only be offered to applicants who can demonstrate they have: sufficient savings to pay a minimum of 5% deposit, Stamp Duty Land Tax, valuation and mortgage fees, and legal fees. We can lend between 25% and 50% of the purchase price of the property. The loan would be secured against the property by way of a second charge, and repayable when the property is sold, or sooner if you wish. 30% is the maximum loan we can lend in urban areas please see page 4 for clarification. Repayment of loan The maximum amount we can lend is 50% of the purchase price of the property. The minimum amount is 25%. The loan will be repayable in a single payment when you sell the property or if you repay the loan voluntary, whichever occurs first. However, if the loan is for 50%, if paying the loan voluntary, you can repay the loan in two instalments, i.e you can repay 20% so that the loan reduces to 30%. We do not charge interest on the loan: 0.1% APR TYPICAL. Instead, the amount you are required to repay is linked to the value of your home at that time. Where the loan was for a certain percentage of the purchase price (for example 30%), you will be required to repay that same percentage (in this example, 30%) of the property s market value on the date the repayment falls due. You may have to repay less than you borrowed, or the same amount, but it is likely that you will have to repay more. If you have to repay more than you borrowed, the effect will be similar to a loan under which you pay credit charges at the rate at which your home has increased in value. For example, if your home increases in value by 4% a year, the sum you will repay will be equivalent to borrowing under a loan with an APR of around 4.2% and if your home increases in value by 8% a year, the sum you will repay will be equivalent to borrowing under a loan with an APR of around 8.4%. Before we agree to make the loan, you will need to pay us 150 to cover the cost of us commissioning a valuation report to ensure that the price agreed is acceptable, and that the property is in a good state of repair.

2 To calculate the amount payable on repayment of loan, we will need to have the market value ascertained by a further valuation report certified by a professionally qualified Surveyor who is a member of the Royal Institute of Chartered Surveyors (RICS). The valuation must be from an independent source i.e. not someone who is either involved with marketing or the sale of the property, or someone representing the seller or purchaser of the property). We can arrange to obtain a valuation report for you: however you would need to cover the cost of the report before it is obtained, which is currently 150. The valuation will be valid for 3 months: if repayment is to fall due on sale, and the sale has not been completed within this period, the original valuer will be required to provide a letter to extend the valuation. If an agreement cannot be reached between you and us on the market value, it shall be ascertained by an independent qualified valuer nominated/appointed by agreement between the parties, or failing agreement by or on behalf of the president for the time being of the Royal Institution of Chartered Surveyors on the applications of either party, and the decision of such valuer shall be final. Example Initial purchase price 120,000 Loan from Grŵp Cynefin (30%) 36,000 The deposit you pay to seller (5%) 6,000 Your mortgage 78,000 Market value on repayment 200,000 You repay to us (30% of 200,000) 60,000 Second legal charge The loan is secured against the property by way of a second charge. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. What type of property can you buy? The property has to be: - on sale on the open market with vacant possession and immediately habitable; - acceptable for mortgage purpose; - a residential property and has no commercial use; and - in a good state of repair. - must be suitable for the size of your family and no more than 1 bedroom larger than the household needs. It can be a new or second hand property Properties offered on a leasehold basis (usually flats) must have a remaining term of at least 60 years, please note that some mortgage lenders will require a higher term i.e. 70 years. The property must be your sole residence (although exceptions may be made for Service Personnel who may be posted away from the area in the future) You can reserve a new home off plan, however we would expect the property to be ready within 6 months of your approval date. If the property is clasified as an empty home as per Conwy Council register of empty home properties, you may be able to acquire some funding to bring the property to a good state of repair. The property cannot be: - wholly or in part in commercial use; - a caravan, houseboat or and other mobile home (including fixed homes covered by the Mobile Homes Act 1983); - owned or part owned by a close relative (save where the purchase is made on the breakdown of a marriage or relationship); - occupied by sitting tenants; or - offered with a subsidy or discount from a public body The property must be within value limits: these vary, depending on your chosen area to purchase, and the size of your family.

3 Typical Value limits as examples in the county of County of Conwy Llansannan Betws yn Rhos Conwy Pentrefoelas Colwyn Bay Llandudno Llysfaen Llanrwst Rhos on Sea Single applicant: 123, , ,200 Couple: 137, , ,600 Family with 1 child 143, , ,000 Family with 2 or 3 children 153, , ,400 Family with 4 children 179, , ,000 Family with 5 children 191, , ,500 Exceptions may be made, for example where the needs of a member of the household with a disability can only be met by purchasing a larger or more suitable property, the value limits can be increased, if a letter outlining the person s needs, and the type of suitable property required, is obtained from an Occupational Therapist. Mortgage. Prior to making an application for financial assistance, we would be grateful if you could contact a mortgage lender/mortgage consultant to make enquiries whether or not you are likely to be eligible for a mortgage. If you have a poor credit history you might not qualify for a mortgage. Lenders that will generally lend on this type of scheme are: Principality, Nationwide, Lloyds Group, which includes Halifax, Lloyds TSB, Bank of Scotland. Please be aware that Halifax, for the foreseeable future, will not lend to applicants who have previously been homeowners, unless repurchasing with a partner who has not been a homeowner. Nationwide also have restrictions, but will only refuse applicants who have been homeowner in the previous 3 years. Your mortgage must be a repayment mortgage and offered by a Qualifying Lending Institution. Fees Please ensure that you have sufficient savings to meet legal fees, mortgage valuation fee and any other fees/costs relating to a mortgage application. You should generally allow at least 2,000 to cover these fees. In addition you will be required to pay Stamp Duty Land Tax (SDLT). No tax will be paid on the first 125,000 of the purchase price, and then you will pay 2% on the proportion between 125,000 to 250,000. For example, on a house bought for 150,000, you will pay 500 in SDLT. Properties situated in an area designated by the Government as disadvantaged may be exempt from (SDLT). Please visit for further information Interested? Make sure you have sufficient savings to meet fees, and pay a deposit of at least 5% of the purchase price. We can only lend you up to 25%- 50% of the price. You will need to arrange a mortgage for the remaining amount. 30% is the maximum homebuy loan that will be given in:- Colwyn Bay, Llandudno, Kinmel Bay, Conwy, Mochdre, Glan Conwy, Llanfairfechan, Penmaenmawr and Penrhyn Bay however, there could be some exceptions, please contact the Association to discuss. If you wish to apply, what do you need to provide to us? When you apply, you must provide us with evidence of ALL of the following:

4 Proof of earnings (if paid monthly copies of last 3 payslips, if paid weekly copies of last 12 payslips) for yourself and your partner (if applicable). If on a Zero Hours contract, please provide details of income earned over the last 12 calendar month. Copy of your P60 dated April If self-employed, certified s/e accounts or Inland Revenue tax assessment on Certificate SA302 is required for the last 3 years. Copies of bank statement for last 3 months for every account that you and your partner (if applicable) have. Proof of any other income, e.g. Working Tax Credit, please provide full entitlement letter. Proof of savings e.g. Tessa, ISA, Bonds, shares etc. Confirmation from a bank / building society confirming the mortgage available to you and your partner (if applicable) by way of a Decision in Principle letter. Copy of any loan, finance/hire purchase agreements that you and your partner (if applicable) are currently repaying. Latest credit/store card or catalogue statement. If paying childcare charges please provide evidence Details of how you will pay the fees involved with buying a house. If family are going to assist you with these costs, please can they provide a letter to confirm this. Proof of having at least the 5% deposit. Proof of ID Birth certificate, Passport. If your application is approved, what do you do next? You will have 6 weeks to look for a suitable property. If you have not found a property within the time limit, the loan will be offered to the next applicant. Once you find a suitable property, make an offer subject to contract, and provide us with details of the property. You must then pay us 150 to cover the cost of us commissioning a valuation report to ensure that the price agreed is acceptable, and that the property is in a good state of repair. Please note that we may reject properties which we feel are unsuitable. If the valuation report is acceptable you can then apply for a mortgage and instruct solicitors. We expect completion to thereafter take place within 2 months. On completion, you will be the owner of the property, the same as any other owner who purchases without assistance, with the exception that Grŵp Cynefin will have a charge secured against the property to protect our loan. Deadline for registering your interest The above is a brief outline of the process. If you are interested in this scheme, please register your interest immediately then provide the required documents within 10 days. Please note that we are contacting applicants who are registered on the Conwy County Council s First Steps Affordable Home Ownership Register. Applications will be considered in the order in which they registered. If you wish to discuss this letter, please do not hesitate to contact me. We look forward to hearing from you. Yours sincerely Affordable Homes affordablehomes@grwpcynefin.org Grŵp Cynefin 54 Stryd y Dyffryn Dinbych, LL16 3BW

5 HOMEBUY FUNDING I / We wish to be considered for the Homebuy funding. My current landlord is :... My accomodation is : house/bungalow/flat Number of bedrooms: 1/2/3/4 I / We do not wish to be considered for the Homebuy funding because: I WISH / DO NOT WISH to remain on the Conwy Affordable Home Ownership Register. If you do not wish to remain on the register, please explain why: Signed. Signed. Date.. Date.. Name and address Contact Number: Mobile Number: /E-bôst: