SmartBuy FAQ's

It is a scheme that helps buyers get on the property ladder with the help of a loan provided by Rydon. It is NOT a shared ownership scheme.

You will own 100% of the property at all times.

Your purchase will be funded by two loans, the first provided by a mortgage lender and the second by Rydon. The percentage of the property that Rydon helps you buy will depend upon your financial circumstances which will be assessed by our nominated mortgage broker.

Your mortgage lender will protect its loan by taking a first charge (mortgage) over the property and Rydon will protect its loan by taking a second charge (mortgage).

Interest is not payable on Rydon’s loan.

It is available to any buyer who can obtain the relevant mortgage. The Mortgage Broker will be able to advise you.

Most lenders will expect you to pay a deposit of at least 3% of your equity share of the purchase price by providing a maximum 97% loan. Some lenders will however offer 100% loans, subject to status. Any deposit is payable when contracts are exchanged.

Every month, owners will need to make payments including: mortgage repayments to lenders (but not to Rydon) service charges, if you buy a house or flat with shared areas that require maintenance; council tax; life insurance and payments into investment products if the mortgage is interest only; buildings insurance; and utility bills and other costs of occupying the property.

As with home ownership generally, you will responsible for repairing and maintaining the property. 

You can repay Rydon’s loan in full at any time. The amount to be repaid to Rydon is calculated as 20% (or lesser percent which you borrowed from Rydon) of the open market value at the time.

You will have to repay Rydon’s loan if you sell the property or you wish to remortgage for a greater amount than your initial first loan or after 10 years, although we may extend this to 15 years in cases of financial hardship.

If you are selling your property, Rydon would look to agree an open market value with you, perhaps based on the contract sale price, provided the property has been adequately marketed, there is no connection between the seller & the buyer and any split between the purchase price & carpets, curtains etc is reasonable. If we cannot agree the open market value then we will use qualified Royal Institute of Chartered Surveyors to determine the price.

The property can be re-sold on the open market at any time. The amount repayable to Rydon on its second charge is based on current open market value of the property at the time.

If you borrowed 20% from Rydon, you would have to repay 20% of the open market value at the time (even if this is less than the amount you borrowed from Rydon.

If there is a sale the Rydon loan will have to be repaid; if there is a remortgage for more than the original loan the Rydon loan will have to be repaid; if one partner leaves and the first lender is prepared to allow the other partner to take over full responsibility for the first loan then Rydon will agree to a similar course with its loan. Similarly if partners break up and the new partner becomes a joint owner with the remaining partner and accepts responsibility for the existing loans.

Yes, if the amount you are borrowing remains unchanged or you increase the amount borrowed to repay Rydon’s loan. If you wish to re-mortgage to raise money for other reasons eg to raise capital or for home improvements then you must repay the Rydon second charge unless the lender is prepared to take a legal charge which will be repaid after Rydon’s loan and not in priority to Rydon’s loan.  

Yes under the Rydon scheme, but you need to note that it is probable that you will not be allowed to sublet under your first mortgage unless you agree to pay a higher rate of interest.

Yes, after 10 years but there is a hardship clause which could allow you to delay repayment, up to a maximum of 15 years. The loan will also have to be repaid if the property is sold or if there is a remortgage which increases the amount of the first loan.

Any increase in value of the property due to improvements made to the property after Rydon has sold it to you will be deducted in fixing the open market value. This will cover eg conservatories or extensions but not eg carpets, decorations etc

Any loan arrangements to be made through Rydon’s nominated mortgage broker and using a Rydon nominated solicitor.